Teach Kids to Save with a Money Thermometer

Parents are always striving to teach their children the benefits of saving and there are plenty of different methods out there. However, one that really works quite well is the money thermometer. It can be adapted for absolutely any goal and is a great way to help kids visualize how much money is being saved.

You will need a large piece of poster board to begin with, as well a ruler and a black marker. A photo of what your child wants to save for is also a nice touch. Use the ruler to draw two straight lines and freehand the thermometer bulb at the bottom. The lines should be about 3" apart to create a thermometer pipe.

The price of what your child wants will determine the number of lines you add to your thermometer, as well as the increments in which she earns. For example, if your child is trying to save up for the latest Barbie doll with accessories for $35 and she earns very little money, you can divide the thermometer stem into 35 parts, one for each dollar. A $500 stereo for your son might be better off divided into 50 parts, with each section counting for $10.

Write the dollar amount next to each section and put the picture of the desired item at the top of the thermometer, along with the price. This can be hung on the wall in an area where your child will be able to look at it frequently. A bedroom door is perfect for displaying the money thermometer.

Next, you will need red paint or markers. Color the bulb in and up to the first line. Every time the child adds another amount of cash to his savings account or jar, he can color the next increment. If you are going for something fairly large, like a bike or skateboard, it might be hard to keep track of, since the increments on the money thermometer will be for larger amounts of cash. You can fix this by having your child save her money in a jar and then deposit it into the bank whenever she reaches the increment mark, be that $5 or $50.

Saving with a money thermometer works better than a bank book for most children because they can see the amount they have saved up in a visual manner. It is easier for them to understand and may even serve as motivation when they see that red line creeping up the thermometer. Why not try it and see if your kids find it easier?