We all have the best interests of our children and grandchildren at heart – that’s a given. But in a digital age, it can be hard to help them navigate the constant onslaught of information and media they’re exposed to.
Nevertheless, there are things we should all endeavour to teach our kids so that they’ll develop into fully functioning, independent adults. This goes for everything from a good moral code, to self-confidence, their attitudes towards the world around them, and it definitely applies to the way they understand money, and their relationship with it.
We’ve already covered off some basics on teaching your child about money, but I wanted to speak about imparting the right knowledge about savings goals.
While as an adult, you may be familiar with setting goals, the concept doesn’t come as easily to a young mind. Here’s a few tips I’ve found useful when trying to get your point across.
Make motivation fun
Kids tend to learn better when they understand the reward on offer for absorbing information, so be sure to focus on the motivation behind saving – the goal itself. Once your kids understand that the time and effort behind saving is the best way for them to get their hands on something they want, they’ll be more likely to get on board.
Help them decide
As adults, we have no problem deciding on a motivation, as there may be many things we want, and we can prioritise. Kids on the other hand may have trouble zeroing in on a particular goal. Make some suggestions for them based on things they’ve shown interest in. A new toy perhaps, or some books, or a particular experience like going to the movies as a family?
When deciding, it can help to remind your kids that the best goals to save for are the more achievable ones. Consider their allowance/pocket money when explaining this, and make sure you settle on something realistic. Best to follow in the footsteps of Goldilock’s three bears – not too big, not too small – just right.
Once the goal is in place, the saving phase starts, but this is often when your child may lose interest, as there are no tangible road-markers for them to use to track their progress and stay on budget. Use whatever tools you can, both on and offline to help with this. Try drawing a graph or thermometer on a piece of paper for them, and keep it on the fridge so they can stay up to date on their savings journey. If they’re tech savvy, take advantage of The Greater’s Savings Goal Calculator here.
Remain involved with the right account
As the main idea of setting a savings goal together is teaching your child about the long haul towards success, be sure to keep up the encouragement of their good behaviour in meeting their regular savings contributions. An easy way to do this is by opening a Life Saver account with The Greater. By ensuring that the account balance grows each month, your child is rewarded with a higher rate of interest on their money. You can even open an account on your child’s behalf. Check out the Life Saver Account in full here, and click here to find a branch to open one today.
Planting the seed of good savings habits early will help ensure your child has the best chance of a stable financial future.
Do you have a tip for teaching your child about savings goals? Leave it for us below in the comments!
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