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Top 5 tips for helping your kids to save money

January 16, 2024

Read Time: 2 minutes, 463 words

For some kids, saving seems to come easily. For others, it’s a constant battle trying to convince them not to spend all their pocket money on Robux, lollies, going out… the list goes on! So, what can parents do to help kids save money (and convince them that saving is a good thing)?

1. Be positive and demonstrate that saving is fun! As your child’s primary role model, if you
show that saving can be fun, it’s more likely they will adopt a similar attitude. Talk openly
about what you are saving for, and how great it is to buy that thing that you’ve worked hard
to earn and save for. A big part of becoming a great saver is believing that you can do it (it’s
called ‘self-efficacy’) - if you believe in your own abilities, it will rub off on your kids. If you’re
not confident just yet, not to worry, fake it ‘til you make it (we believe in you!).

2. Give them a regular source of income. When a child has regular income (pocket money!),
they get practice in making active decisions as to whether to spend or save, and you can
help them create a savings plan. This could be regular pocket money, or a job. If you can’t
afford regular pocket money or are in the habit of buying everything for your child (and
hence they don’t have anything to save for), you could consider handing over responsibility
for part of the household budget related to them e.g. clothing, lunch money, or
toys/entertainment.

3. Create goals based on what motivates your child. Go with the flow, not against it. Even if
you’re not into those plastic Pokémon cards … if that’s what floats your child’s boat, let
them save for it. If it’s a more expensive item that might be reserved for a birthday or
Christmas, you could encourage them to save a certain amount as a contribution towards it,
or you could join forces and save together for a family holiday.

4. “My parent always told me…” We all have phrases that we associate with our parents
growing up, and they are often leave a lasting impact. Consider how you communicate
about money and what message it sends e.g. ‘Money doesn’t grow on trees’, ‘save before
you spend’, ‘always sleep on it’.

5. Encourage, celebrate, but let them fail. Every decision not to spend exercises the muscle of
delayed gratification, and the more you work those saving muscles, the stronger they get!
Celebrate your little grownup’s small success – this will motivate them to continue to save
and spend mindfully in the future. But on the other hand, sometimes kids make mistakes
and that’s fine too - natural consequences are an effective teacher.

Quote

Consider the PDS, FSG, TMD and other important information at heykit.com.au/legal. Any
advice given is general in nature and does not take into account your objectives, financial
situation or needs so please consider whether it is appropriate for you.

Bbooks

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