Tips on Introducing the Concept of Saving to Our Children

From one day to the next, and then stretch it a little longer. When a child is working on Thanksgiving crafts projects at school and circling the calendar up to see how many days until turkey Thursday, he is aware if short intervals between today and another day. That's when it's appropriate to begin the savings process. Perhaps by suggesting that if he puts away part of this week's allowance until next week, he can buy the packet of baseball cards he wants. Then, as his taste in acquisitions becomes more expensive (and you can bet it will), you can introduce a longer saving period.

From the visual and concrete to the abstract. Let's give a rousing, elbow-bending "yes" to manufacturers who are bringing back glass piggy banks with easily removable rubber plugs.

One has to wonder what manufacturers had in mind when they developed banks you had to destroy in order to get the money. Was it another indication of planned obsolescence or was it the manifestation of the mistaken idea that saved money is never to be spent?

Another enthusiastic "yes" to parents who create their own piggy banks out of glass jars because they know that kids need to watch their savings grow and like to take the money out to count it.

How much to save?

Just as there is no uniform percentage of saving for adults, none exists for children. Kids who are given more allowance than they need each week should be able to save. Those who have every dollar accounted for cannot reasonably be expected to keep meaningful sums in reserve. The older the child and the more able she is to work for extra money, the more savings she can accrue.

When there is extra money, such as earnings from lawn-mowing or dog-walking, kids should be encouraged to save at least part of the money instead of spending it all on CDs, food, and movies. Because kids old enough to earn money are beginning to understand the value of having extra cash handy, most take to saving. Those who are tempted to spend as fast as they earn are often left disillusioned. Just when they need or want the extra money, they find themselves broke. One kid phrased it this way after he had frittered away all his summer earnings on snacks and little things he could no longer remember.