The following is a guest post from Sara.  Consideration was received for the editing and publishing of this article.  I appreciate what she shares in regard to helping our kids learn to save money!

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In Proverbs 22:6, the Bible tells us very specifically to: “Train up a child in the way he should go, and when he is old, he will not depart from it.” The Bible wants parents to teach their children the ways of the world – including how to make smart money choices. Teaching children to save and spend wisely is essential to raising healthy kids, as it leads to smarter financial choices when they’re older.

Responsibility Leads to Reward

Children can be earning what they receive. In the adult world, in order to collect money, you have to work hard for it. This reality is sometimes overlooked by parents, who simply want to provide their children with what they need and want. In order to prepare children for the future, make sure they understand they’ll also need to work hard for new items and money.

Set up a weekly allowance for your kids. Designate some chores to your child and let them know they’ll receive their allowance at the end of the week. Much like a job, your child will be required to do well, in order to receive their paycheck on payday.

Make Saving Fun

Children may want to run right to the candy store to spend their money, so it’s your job to remind them that saving their funds will result in more expensive items. The first step in creating a smart saver is to make saving a fun and creative experience. You may want to paint a piggy bank or old jar with your child. They can store their money here and watch as it fills to the top.

When children are saving for something specific, the process becomes a lot more fun. Ask your child what they really want, like a new computer or tablet. These items aren’t cheap and will require that your child saves for a long time. When their jar does become full, take them to purchase the item or to the bank to make a deposit into their account.

The bank is a fun place for children to learn about money. Bank tellers often keep small candies and suckers to give to children, making the trip rewarding. If this is your child’s first visit to the bank, don’t be afraid to ask the teller to introduce themselves and explain what they do. This is also a great time to explain how interest works and how money grows slowly in the bank, so it’s worth it to save for a long time.

The Big Payoff

Shopping is the big payoff, because it’s the time kids finally get to spend some of the cash they’ve been saving. Your child has worked hard, saved enough, and is finally ready to make a purchase. At this point, you can teach good shopping habits. Introduce children to the world of coupons. If it’s a new computer or electronic they want, search for Alienware coupons and other coupon deals at NerdWallet. They’ll begin to see how a single coupon can result in hundreds of dollars in savings.

Finally, when your child has scrimped and saved for an item, they’re more likely to take better care of it. This is your big payoff. You’ve been a really great parent by teaching your kids the value of a dollar. Now they’re being more respectful to their possessions. Plus, they’ll be ready to start saving for something else right away!

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