Teaching Kids to Save Money

According to Sara Parker from Utah Central Credit Union, getting kids to save money may be easier than you think.

Kids love “hands on” projects that engage their mind as well as their physical energy. They learn best when they have visual, tangible objects that they can hold or play with. If the task is also fun, you will be very effective in shaping their behavior.

Here are some beneficial tips:

1. Use a piggy bank. It can be pink with a wiggly tail or something more modern and streamlined, but it provides a place for kids to store coins and money. To create an association between the things that children want and the cost of that item, place a picture of the “want” on the piggy bank to reinforce the habit of saving money.

2. Let kids watch you save. Watching parents save money by throwing coins in a jar at home or making deposits at a credit union or bank can form the foundation of strong financial principles. Experts say that this is one habit that can have life-long effects.

3. Create an allowance. Children can be rewarded for working around the home, finishing their homework or helping others—whatever good principal you are trying to instill in your child. This is also a good place to introduce some rules about how to use the money by setting a portion aside for a future purchase.

Utah Central’s Critter Crew program gives parents all the tools they need to encourage good saving habits, including a piggy bank, an annual incentive program call “Stash Your Cash,” money for good grades, a special “Critter Crew” place at every Utah Central branch, newsletters, birthday cards and other prizes and gifts.

You can take advantage of many of the programs offered at Utah Central Credit Union by visiting a branch near you. You can find one at www.utahcentral.com.

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