How to Teach Your Kids Fiscal Responsibility

Did you know that there’s a holiday completely dedicated to saving money? National savings day is October 12th but should be celebrated year-round. The holiday was created by Capital One and is meant to empower people to feel confident about their fiscal choices and show that saving is a simple process.

When it comes to saving money, we are our kid’s first example. This is why we have curated a guide of 5 ways to educate your kids on the importance of fiscal responsibility.

1. Make a Savings Jar

Savings jars are a great way for kids to have a visual representation of the saving process. Watching their savings grow will thrill them. When their savings jar gets full of coins, they can use a coin sorting activity to see how much they have collected.

2. Save Up for a Big Purchase

A great way to teach your kids the value of saving is to help them save for a more expensive purchase, such as a gaming system. Brainstorm with them on ways to make money. Use a savings chart with a visual representation, so each time they add to their savings- they can see how much closer they are to their goal. 

3. Help Them Host a Yardsale

Kids often learn the value of money and savings best when they work for it. Yardsales are a great way to work for some extra cash and de-clutter. Help your kids clean out their old items and advertise for a yard sale. This will instill a sense of responsibility in them and help them learn how items have a monetary value.

4. Use a Payment Tracker

In order for your children to see how fast money can be spent and where their money is going- use a payment tracker. It will allow kids to learn the value of an item that they may not have been able to afford alone at the time they bought it. A payment tracker can help kids keep track of how much money they owe still for items, as well as give a visual representation of their spending habits. 

When using a payment tracker, you can also explain to your kids what a credit card is and how it can also be paid off in installments. 

5. Give Allowances

While kids are too young to have jobs, they can do chores around the house for extra cash. These chores can be as simple as taking out the trash. Working for cash is the best way for kids to learn the value of money. 

Teach your kids that items have monetary value and often the best items may take more work to earn the cost. Explain that this is why saving a portion of your allowance is always important, rather than spending it all. 

It is never too early for kids to begin learning about fiscal responsibility. You are their first example of fiscal responsibility, so never be shy to answer their questions about savings and money. When parents teach their kids the importance of saving it gives them a great foundation for their financial future.