Developing savings habbits for your children

Here are some tips for parents to help children develop healthy savings habbits.

Saving:

6 Years and under - Use a money box to help your child learn how to save. This provides something tangible so your child can watch his or her money grow.

7 - 11 years - Teach your child the benefits of banking his or her savings. Looking at their bank statements may help to show how their money is growing by earning interest.

12 Years and over - Explaining products and concepts like term deposits, simple interest and compound interest may help to improve your child’s general understanding of banking. You may wish to teach your child about short and long term goals and ideas for increasing their savings.

Spending:

6 Years and under - Set short term savings goals for your child. This may help your child start to see and understand the rewards of setting goals and achieving them.

7 - 11 years - Help your child to plan what they want to spend money on to ensure your child has time to save for it. The concept of borrowing money may also be introduced – if you borrow money to fund purchases, this money will need to be paid back.

12 years and over - The use of ATM’s, EFTPOS, debit cards and credit cards may be explained to your child as ways to access and spend money without cash. Your child may wish to start to think about more long term commitments and the concept of budgeting.

Giving:

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Help your child understand that it is nice give things and why giving is important.

Help your child to understand about those who are less fortunate. This doesn’t have to be in the form of money, but could include volunteering time or donating clothes to charity.

Help your child understand the concept of charities and donating.

Encorouge your child to select a charity they would like to support.

My Tax Zone
(Source Suncorp)