According to a Financial Security Index survey conducted by Bankrate recently, only one in five working Americans are actively saving money from their paychecks each month. This low rate has not changed significantly in the past four years.
That same study found that American parents were among those who did save the most each month, because they felt a strong sense of responsibility to have something put by for a rainy day.’ Parents also indicated a strong desire to teach their children how to save something from everything they earn.
Most parenting experts agree that children need to be taught the importance of money, of saving it and using it wisely, at an early age. They recommend the following.
Teach by example
Don’t hide simple financial transactions, such as income and savings account activity, from children. Make sure they see you taking a portion of your income each month and putting it in a savings account. When appropriate, help them to set up their own savings account.
Give to charity
To counterbalance today’s materialistic culture and influence on children, help them choose a charity that they would like to donate to. This teaches children that while money is important, what you do with money is even more important.