Tips for Teaching Kids How to Save Money
Some kids love to save money, others don’t. As a parent what can you do to show your kids the importance of setting a goal, budgeting, and saving money? It’s important to make saving money fun. And the earlier you start teaching your kids to save money for their education fund the better.
Talk about Money
Your child won’t want to save money unless you talk to them about why money is important. While you may not want to talk about family finances and how much you make with your children, you do want them to learn about the value of money. For the most part, kids only see their parents spend money; most don’t know how it was earned or how quickly it can disappear. Teaching them the value of money at an early age can help them understand the importance of saving, which will contribute to their success later in life.
Help Your Child Prioritize
Have your child write down a wish list o/f things they want to buy, and have them prioritize that list. Establishing a way to save money will help them think about short-term and long-term goals. If they have an allowance, have them break down what they get and set money aside for different purposes. A short-term goal might be to set aside money for a toy. A long-term goal might be setting aside money for a laptop or education fund.
Make a Savings Goal Chart
Once your child has decided what they want to save their money for, make a chart to help them figure out how long it will take. If they want a toy, put a picture of the toy at the top of the chart; represent each week it will take to save enough money with a box and a goal line. Your child can put a sticker in the box once the money from their weekly allowance has been set aside. This way, they can see themselves getting closer to their goal.
A great way to learn the value of money and make saving fun is by playing games. There are a number of games out there that teach children about money. The most popular would have to be Monopoly and The Game of Life.
Use a Piggy Bank
When kids are saving money, they like to have a place where they can watch it accumulate and grow. You might think a piggy bank is an outdated way to save money, but it’s still a great way to make saving fun for your kids, especially when you consider that kids are very visual. Telling them about money is one thing, but showing them their coins and bills increasing in a glass piggy bank or jar is something totally different!
Offer Rewards for Saving Money
Rewards are a great way to motivate people. An allowance motivates kids and rewards programs motivate parents. If your child doesn’t spend any money during a specific period time, give them a reward or treat. The reward or treat can be anything that continues to motivate your child.
Open a Savings Account
Beyond a piggy bank, when your child is old enough, help them open a savings account. Teach them how to read a monthly bank statement, the importance of compound interest, and money grows if you save.
You can encourage your kids to save extra money by matching anything they set aside that is above and beyond the standard weekly amount. This will give them an early look at different savings programs like a workplace RRSP that matches contributions.
Global RESP Corporation—Helping Families Save for Their Children’s RESPs
Teaching your child about the value of money is an important step in helping them save for their future—especially if they’re going to pursue a post-secondary education. In addition to their savings, one of the easiest ways to help your child pursue university or college is by setting up a Registered Education Savings Program (RESP).
An RESP is an investment account designed to help you save for your child’s post-secondary education. The money grows tax-deferred and the federal government tops it up through the Canada Education Savings Grant (CESG) , Canada Learning Bond, and provincial grants. Students can receive up to $7,200 for the CESG and up to $2,000 for the Canada Learning Bond. As for the provincial grants, students can received up to $2,500 through the Quebec Education Savings Incentive, $1,200 with the British Columbia Training and Education Savings Grant, and $4,500 through the Saskatchewan Advantage Grant for Education Savings.
While it’s easy to set up an RESP because of all the investment options, it can be difficult to choose an RESP provider. Why choose Global RESP Corporation (GRESP) to help you save for your child’s post-secondary education? Well, for one, the Dealing Representatives at GRESP specialize exclusively in RESPs.
With regional offices in British Columbia, Alberta, Ontario, and Quebec, and hundreds of independent representatives across the country, Global RESP Corporation is one of the fastest growing companies in the RESP industry in Canada. Thanks to our national presence, GRESP is one of the few companies that administers all provincial and federal grants available.
If you’re interested in getting started with a RESP Plan, find a Global RESP Corporation sales representative in your area. Or fill out a form, and a Global RESP Corporation sales representative will contact you.