5 Tips on Financial Literacy for Kids

 Learning how to save is a necessary part of financial literacy. For kids, and yes for parents too, saving money can be a very difficult process. Sometimes it can be our thinking about saving and sometimes it's just our actions. Whatever the challenge learning this skill is essential. With this in mind let's look at some ways we can incorporate saving into our daily routine and also the routine of our children. I've included some simple tips that will keep your bank account growing.

Tip #1: Spread the Wealth
Since your goal is to save money you should use a combination of banks. You should consider using a regular bank for your everyday checking account and using an online bank for saving. All of your expenses, your paycheck, and everything you need for everyday living should be paid for out of this account. I would then set up an automatic deposit from your checking to your online savings account. This will get you saving without thinking about it. I would also do this for your kids. The best part is since the savings are automatic and out of sight, the temptation is lessened to tap into them.

Tip #2: Set a Target
When you set your target it can be towards a specific item or towards a money goal. Whatever you are saving for be sure to put a time by which you want to hit the target. This will determine your saving strategy. Let's say you want to buy a $500 bike in 10 weeks, well then you know your savings goal is $50 per week. I know this sounds simple but when you consider financial literacy for kids sometimes simple is the best.

Tip #3: Pay Yourself First
Sometimes the hardest thing to do when you are trying to save, is the actual act of saving, especially if you have a lot of bills. That's why it's necessary to adopt the principle of paying yourself first. Before you pay a bill or before your kids spend it all, put money aside. Some people say you should save at least 10% of your income but if you can't start there, begin where you can and build from there.

Tip #4: Scissors are your best friend
You need to track where your money is going. So spend a week writing down everything you spend money on. By doing this you will expose the leaks in your budget that are affecting your ability to save. Most people who do this are very surprised about where their money is going. When you find the waste then you break out those scissors and cut it out.

Tip #5: An educated consumer is the best consumer.
Regardless of how much you're trying to save you will need to spend. When spending you want to make sure you get the most for your money. Be sure to look for sales and coupons which everyone knows. However, the internet can become your friend. If you shop online you can go to sites like eBay & Craigslist to find great deals. You can also do a Google search to find coupon codes for your favorite stores, which can give you discounts and free shipping among other things.
When it comes to saving and increasing financial literacy for kids and adults it's not about focusing on the big things. Change the little things and you and your kids can start to see big results in your bank accounts.

 

 

 

 

 

 

 

 

 

 

 

 

Credit: Nicole Clemow