How to go about encouraging children to save money

Image source: Pixabay.com 

Joseph Cianciotto has mentioned that one of the hardest parts about teaching children to save money is to motivate them. Children love to spend when they have cash and see something they like. Getting them a piggy bank or even a glass jar at home is a good start. But it shouldn’t end there. Parents have to follow up on the encouragement.

For this blog, Joseph Cianciotto shares a few ways to encourage their children to save money.

Open a savings account.

When accompanied by their parents, children can easily acquire a sense of responsibility when they go to the bank to open an account. As long as it’s explained in a manner that makes children want to save, opening a savings account would be a terrific idea. It serves as a good foundation for good financial habits, which they will carry on when they grow older, Joseph Cianciotto mentions.

Teach them the difference between wants and needs.

Image source: Pixabay.com

Parents should teach children the need for savings. One of the best ways to explain is to differentiate “wants” and “needs,” as well as the measures to satisfy both. Parents can use a child’s daily budget as the perfect basis for determining this.

Talk about goals and incentives.

Kids’ goals will mostly revolve around their wants at their age—and this is not a bad thing. But, according to Joseph Cianciotto, this will actually push them to save more money. To increase motivation even further, parents can offer incentives, such as conditions to shoulder the rest of the purchase if their child saves up to a certain amount.

Joseph Cianciotto is an executive creative director and lives in Long Island, New York, with his wife and two daughters. For more articles on parenthood, visit this page.