Use Christmas Cash To Teach Power Of Savings

Using a bit of your child’s Christmas cash for a savings account can teach healthy savings habits.

White County UT Extension Agent for Family and Consumer Sciences Mallory Weber said that the more you can teach savings early on, the easier it becomes to instill the habit with kids. Weber said parents should discuss budgetary matters, such as food and gas, with kids.

“It makes them decide where does this money need to go,” Weber said. “So its teaching them at a young age, big choices. You know whether do I want to buy this or do I want to buy this, but I really need this right now. I need to go with my needs over my wants.”

Weber said that doing your best to teach your kid where their money goes, focus on Return on Investment. Weber said ROI instills the mindset of saving. Webb said that after teaching her own daughter about ROI, her daughter bought a baby calf to raise and sell later on.

“How is this money going to effect whoever I’m giving it to,” Weber said. “Or the store I’m giving it to.”

Weber said parents have responsibilities regarding their kids’ financial education. Weber said these responsibilities include giving your child an allowance, creating a budget plan, and regularly reviewing their financial habits.

“Making sure they’ve always saved enough for there essentials,” Weber said. “If they do have to pay for there gas, or if they have rent coming into college or something like that, just making sure your money, and your allocating your money to the most important things first.”

To further set your child up for financial success, Weber said she cannot emphasize enough the importance of leading by example. Weber said that kids learn a lot from observing their parent’s financial habits, So, by demonstrating responsible spending and saving practices, one will leave a lasting impact for there child.