Teaching Children to Save

Do your children save a portion of every dollop of pocket money they receive? Or are they more likely to blow it on lollies and cheap toys? It's never too early to begin a child's education in the proper use of money - and their own savings account is a terrific start!

Opening childrens account or kids savings account is probably the easiest way for you to teach your kids how to save for the future. So here are the top 4 tips you can follow to effectively teach your children how to save money.

Let Them Open Their Own Kids Savings Account

Most parents open childrens savings account for their kids. They will usually give kids savings account as gifts to their kids. Opening the account is the first step, but unless your offspring understand how to properly use a savings account, the lesson is likely to be lost. Consequently, they will not know how to appreciate their childrens accounts and how they can use such kids savings account to grow their money.

What you should do is to talk to your children and discuss about the benefits of a kids account. Then you should accompany them to the bank and let them open their own children savings accounts.

This important financial step can have a big impact on your kids. With patience, any youngster can learn the benefits of regularly feeding their savings account.

Give a Matching Bonus for Your Kids

Once your kids have their own childrens account, you must encourage them to regularly deposit whatever savings they have. One way of enticing a child to regularly fund their kids savings account is to give a match bonus for any amount deposited in the bank.

For example, you can give a 100-percent matching deposit to your childrens savings accounts for every dollar saved. This contribution will greatly encourage your children to regularly deposit money in their childrens savings accounts.

Teach Your Children to Set Goals and Priorities

If your children want to buy something, you should teach them how to prepare for the purchase. Further stimulate their saving by mapping it on a chart, and placing the chart where they can see their savings growing.

Get them to use their imagination, dreaming worthwhile targets for their savings. If there are several items that they want to buy, help them how to choose which item would be their priority. This way, they will be more conscious on their spending habits and they could monitor the growth of funds in their childrens savings accounts.

Lead by Example

It is best if you can show to your children that you are saving too. Bring along your children when going to the bank so you can show them that you are depositing money also in your account.

Youngsters like to imitate their elders - if you demonstrate good financial habits they are likely to follow. So better lead by example so that your kids will make it a habit to regularly deposit money in their childrens savings accounts.


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Article on savings accounts from children by Richard Greenwood, co founder of compareyourbank where you can compare savings accounts from Australia's leading banks to get the highest rates.