Encouraging your children to save
It’s never too early for your child to learn valuable financial habits.
The earlier your child learns about money, the more likely they are to make better financial decisions later. We’ve got some top tips to help make money fun and to teach your child about the importance of saving.
Pocket money can help your child kick-start their savings and teach them the importance of saving. Earning money for doing odd jobs around the house gives your child a little extra responsibility so they can see the benefit of working and feeling proud of their accomplishments.
Open a bank account
Introduce your child to the concept of banking early by opening their own account so they can watch their money grow over time.
Teach them about banks
Visiting a bank and depositing money shows your child what a bank is and what they do. If you read through your child’s bank statement with them each month they’ll start to understand the process of money going in and they’ll see their balance steadily rise. Depending on the age of your child you can even introduce the idea of interest. It’s bound to peak their interest earning money for nothing!
Speak with your child and find out what they really want to buy. Work with them so they can see how much they’ll need to save to achieve their dream. By letting your child work towards a goal you’ll be teaching them how to budget and save and they’ll get their reward at the end.
Play a money challenge game when you’re next at the supermarket. Give your child a certain amount of money and a list of what you need. Let them choose the items and learn about calculating as they go. If they come back with change – challenge completed. It goes straight to their savings.
As parents, we all want the best for our children. By teaching your child the basics about money and the importance of saving you’ll be giving your child the tools to really succeed in life. RACQ Bank and the education team has launched its first financial literacy campaign, Cash IQ. The 50-minute presentation teaches year 11 and 12 students to make informed financial choices.