Learning to save is an essential skill in life; and it may be wise to teach your child from a young age. According to a 2019 survey from The Money and Pensions Service, just 44% of children and young people aged 11 to 17 felt confident managing their money*.
Becoming financially literate and getting into good savings habits while you’re still young may be beneficial to your child’s future; even if you start with the basics.
Saving doesn’t just help children to understand the value of money, it helps them to learn about financial goals by budgeting and may encourage better financial decisions later in life. We’ve covered some top tips below to kick-start your child’s saving habits.
The value of money
It’s important to let your child know that money is usually earned in life; rather than given. Everything from the toys they own, to the meals they eat cost money. Teaching your child what money is, how it can be earned and why they’ll need it in life to make purchases will help them understand the importance of saving.
The traditional piggy bank has been around for over 600 years; it provides a fun and engaging way to teach children to save. While they save, they’ll see their money grow, helping them to understand the value of putting money away for the future. By using a piggy bank, you can also give your child targets; for example, a piggy bank that’s full of coins could be exchanged for a new toy.
Your child may be eager to earn or save more money as they get older, and you could encourage this with an allowance. Introducing simple chores like making the bed, cleaning the dishes, or folding clothes to earn their allowance will teach your child how money is earned, and gives them something to work towards.
Opening a children’s savings account
If you can teach your child the value of money and get them into good savings habits; they may be more likely to make smarter spending decisions and budget their earnings as they grow older.
A children’s savings account may help your child understand the importance of saving from a young age and here at the Marsden; we believe it’s never too early to get them started. Available to young people under the age of 18, our Junior Saver account allows your child to save from £1 up to £10,000 with easy access to their money.
It’s important to read the terms and conditions of an account before you open it, to make sure you’re happy with any conditions in place. You can find details about this account on our ‘Children’s savings’ page.
How can the Marsden help?
We’ve been helping our members with their savings goals since 1860! We have 8 branches across Lancashire, so whether you’re from Barrowford, Burnley, Clitheroe, Colne, Garstang, Lytham, Nelson or Poulton; stop by your local branch, where we’ll be happy to talk you through our product range.
*The Money and Pension Service: 2019 UK Children and Young People’s Financial Capability Survey