Top Money Saving Ideas for Kids and Teens

In most cases our schools rely on parents to teach their children about money saving ideas and let them bear the responsibility of educating their child on personal finances. If schools do offer any form of financial education, the course is often an elective that the majority of students don't take. And, many parents delay talking about money and the strategies to save money until their children are ready for college. Other parents simply ignore the topic of how to save money altogether.

Not teaching kids and teens money saving ideas can have negative consequences. College campuses are now fertile ground for credit card companies. Some companies sign students up for credit cards by offering free gifts. For a college freshman who doesn't have a clue about how to handle money and credit, these enticements can be devastating. Some students reach credit card limits within the first year and then spend years trying to get out of credit card debt.

It's never too early to share money saving ideas with your children. In this age of plastic, many credit card companies are even marketing to teens and preteens. Without knowledge of the dangers of credit card use and abuse, an alarming number of teens and college students are starting their adult lives behind the eight ball - owing thousands of dollars before they even have an income. Unfortunately, these problems can last a lifetime.

When To Begin A Financial Education for Kids and Teens:

If your child can count, then it's a good time to give your child money saving ideas. Preschoolers generally understand the concept of saving and are usually excited about having and using a “piggy bank”. Keep separate piggy banks for giving, saving and spending. Also, this is a good time to start giving your child a small allowance — either outright or in exchange for doing simple chores around the house, which will help them understand the concept of earning money.

At this age, children should know the names of coins and paper money. Also, your child should have an idea of the difference between “needs” and “wants”. Getting your child involved with family shopping can teach a basic understanding of the cost and value of items.

Tweens generally are old enough to understand the concept of comparison-shopping. This is a great time for your preteen to learn about paying for things with cash, not credit, and that plastic is not an unlimited money tree.

Parents can teach teenagers valuable personal finance skills that will carry into adulthood. Help your teen understand how to balance a checkbook and pay income taxes. Teaching your teen about insurance, buying cars, real estate mortgages, and ways to save money will provide a jump-start on becoming an adult. And isn't that exactly how teenagers say they want to be treated?

Once youngsters grasp the basic money concepts, it's time to move to the next phase, which is establishing a cash flow plan or budget.

Here are the three key steps:

Children learn quickly by observing their parents. If parents have bad money management skills, odds are their children will pick up on those same characteristics. Likewise, if parents have good personal finance habits and offer good money saving ideas and buying tips like paying with cash rather than on credit, they will plant the seeds that foster financial peace of mind that can last a lifetime.

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