Teaching My Children to Save
We talked yesterday about allowing your children to practice decision making with their own money. How do you allow them to fail while instilling positive habits?
With the teens in the residential program at Sheridan House every decision they make either has a reward or a consequence attached. They begin to create positive habits because the rewards begin to act as an incentive. During our summer program we teach them good money habits using fake Sheridan House money called Mazumas. There are many opportunities for the kids to spend their Mazumas all summer. At the end of the summer we have an auction where the teens can spend their remaining Mazumas. Those who saved Mazumas walk out of the auction with some awesome things. It is a very black and white lesson for these kids on the value of saving.
How do we instill something like this in our homes? We can make an incentive for saving. One idea is to set aside two different times a year that you will match 50 percent or even penny for penny what your children save. The first can be before Christmas so your child can actually spend his or her money on presents. The other can be before family vacation that way they will have spending money. Get creative on how to reward your child for making positive financial decisions!
Listen to today’s podcast for more insight on training your children to save.