It is no secret that kids love pocket money with many of them dreaming of how to spend it long before the dollars are actually deposited into their eager little hands each week.
In addition to the dollars, parents can also provide the sense needed to help their kids develop good saving habits.
A great starting point is teaching kids the value of money. Give them examples of what can be bought for $2 as opposed to $50. Talk to them about some of the things they might like to buy with their money (apart from lollies) and help them to work out how long it will take them to reach their goal. For example, if they save all of their pocket money it will take one month but if they only save $2 each month, it will take six months. This may provide an incentive.
Where possible it can help to divide their pocket money into notes to be saved and coins to be spent. Finally, try to keep the saving goals realistic, otherwise kids will may not stay motivated. Click here for more great saving ideas for kids.
