Tuesday, November 15, 2011
How To Teach Your Toddler to Save Money
Money does not grow on trees.
Saving money can become a habit. That is especially good during this economy. Teaching your toddler how to save money will be one of the most important skill that you can teach your toddler. There is an old expression “Money does not grow on trees.“ Well money will grow if you save it and constantly add to it. Toddlers will value things more when they know that they paid for it, rather than it just being given to them.
1. Start out by deciding if you are going to give your toddler an allowance. Also, decide if you want your toddler to work for the allowance. If you determine, you want your toddler to work for the allowance by doing a chore around the house, explain to the toddler that you do not have to pay him/her. Explain why you are doing it. Starting early gives them a sense of having to work for what they will get. The chore can be something simple, depending on what you feel your toddler can handle. For example, you may have him/her help you dust, feed the dog, or water a flower.
Toddler watering garden
2. Next decide on a goal. Talk with your toddler about something that he/she might want to save for. It could be a toy, a special upcoming event, or maybe a game. You want to keep it simple. The main thing is to get your toddler motivated to save. You might be surprised as to what your toddler can do. Figure how many weeks it will take to accomplish that. Then double the amount that you agreed to save. The reason for this is so when the weeks have ended and it is time to make a purchase, he will not exhaust all of what he has saved, he will have something left in his bank.
3. Each week when you give your toddler his/her allowance, tell him to put the amount that you both decided on in his/her bank. Once he/her has saved up the amount that is needed you can take that amount and spend it on the item that both of you agreed upon.
Toddler putting money in his bank
4. Now start over again with a new goal to save for.