Did you know we develop our adult money habits at the age of just seven? Learning how to save and manage money is a vital skill for your children, and the benefits of being a child saver will continue well into their adult lives.
Here to help your entire family enjoy financial wellbeing, we’re exploring the benefits of encouraging children to save money, as well as sharing some tips on making it fun for all, in our latest blog.
Benefits of teaching children to save money
So, how can your children benefit from learning about money and saving at an early age? Here are some of the advantages of starting them young.
Encouraging children to earn, manage, and save their own money teaches them responsibility and self-confidence.
Armed with these qualities, they’ll enter adulthood better equipped to make those all-important financial decisions and feel prepared to tackle any challenges they encounter along the way.
Builds future wealth
According to research, adults who were childhood savers are likely to have more assets in later life.
So, encouraging your little ones to save now can have a long-term impact on their financial future.
Encourages financial independence
When good money habits start early, children are more likely to gain financial independence sooner and less likely to rely on the Bank of Mum and Dad.
A 2019 poll by Virgin Media revealed almost 50% of adults borrow money from their parents. Therefore, encouraging your children to be financially independent at a young age will positively affect your finances, too.
Setting, working towards, and achieving goals is a crucial skill for young people. When you encourage your children to save money, you share the importance of goals and teach them how to accomplish them.
Being goal-orientated and self-motivated will help your child throughout their lives, both personally and professionally.
Tips for educating children about saving
So, how can we encourage our children to become super savers?
Learn through play
Learning through play is a great way to introduce children to money management.
For pre-schoolers, setting up a make-believe shop with toy money changing hands won’t just pass the time on a rainy afternoon. It could lay the foundations for a bright financial future for your family.
Older ones will love games like Junior Monopoly, a fun way to nudge your children to be more money-minded.
Pocket money can help children understand the value of money and allow them to taste the satisfaction of saving.
While most children are quick to blow their pocket money on magazines and sweets, they can soon learn the fulfilment that comes from saving up for something special.
To help encourage them, why not download one of our Super Savers Trackers? It's a downloadable sheet that you can print out and stick on your fridge to make savings goals come to life. Download yours for free here.
Let them earn
Saving can be addictive, so once your children have a taste of the perks of pocket money, offer them the chance to earn more by completing set tasks around the home.
Make a list of responsibilities, which children should carry out without financial incentive. Then, create a list of additional chores they can volunteer to complete for extra money. This way, you can inspire them to earn money without falling into the trap of paying them to carry out everyday tasks.
Set the standard
The most important way children learn good habits in all areas of life is by observing what you do, so be sure to model good behaviour when it comes to saving.
Speak to your children about money and explain what goes into making and saving the money to fund Christmases, holidays, and birthdays, rather than taking them for granted.
Putting your family first
GMB Credit Union is here to help your whole family experience the satisfaction and security that comes with financial wellbeing.
Set up by members for members, GMB Credit Union has a Junior Saver Account to help you and your children learn healthy money habits as a family.
You and your child can manage savings together online, and your child will receive an annual dividend payment every April to help teach them about the rewards of saving.
Find out more and apply for a Junior Saver Account here.