Ideas that Encourage Saving

Below is a great article we found on About.com.  It was written by Madison DuPaix.  You can see the original article here, but we've copied the high points below.  She offers some really great ideas for encouraging saving and helping parents talk to their kids in ways they will understand.

Match Savings

For every dollar your child saves, offer to put in a matching contribution.  When they are little, you might be able to match 100%.  Once they are older 25% or 50% might be reasonable to encourage them to save.

Open a Savings Account

Encourage him to deposit a portion of money he earns into a savings account and track the interest earned on his account.

Encourage Them to Set Goals

If they want to purchase an expensive toy, hang up a drawing of an empty thermometer. As they save their money, color in the thermometer. They'll be able to track their progress visually.

Give Non-monetary Savings Rewards

Young children may not understand that $10 tomorrow is better than $5 today. Consider rewarding children with things special to them for saving their money: stickers, toys, and special outings can be helpful.

Make a Wish List

Encourage children to identify fun things to spend their money on. For older children, prioritizing the list can be a helpful challenge.

Display a Picture

Hang a picture of a wanted item off their wish list on the wall. If your child is saving for a special purchase, hang up a picture to remind them of what they are working towards.

Save Money in Front of Your Children

Keep your own piggy bank or deposit money in the bank when you are with your children. Explain what you are saving for and your children will mimic your behavior.

Help Them Spend Money

Occasionally, children will get so focused on saving their money, that they won't spend any money along the way. Help them enjoy their money by spending some on small purchases or surprising them by buying something they'd like.