Even very young children can begin to understand the basics about saving versus spending, with a little help from parents. When the boy or girl receives money, whether it is from allowance or for a birthday, parents should set up two different jars. One is to be spent on anything from toys to candy, while the other is strictly for savings. The child must then decide how much to put in the "spend" jar versus how much they would like to see go into the "save" jar. This teaches children the basics about saving properly, without overwhelming them.

"Many kids learn best in a hands-on way. Sitting and talking to them about savings accounts will cause them to quickly lose interest. Instead, it's best to actually separate the money in a way that they can see. This allows them to learn about managing money while making sense to them and is appropriate for their age. When parents wait to talk about money, these concepts are no longer a natural instinct for kids, and may become more difficult to understand," notes a representative from Little Hands Learning Center.

As children get older, moms and dads can take them to the bank and show them how to set up a savings account. They can then go through the process of filling out a deposit slip, and may even want to consider matching a certain amount that their child saves on their own. If the child saves five dollars, perhaps Mom or Dad will add their own five dollar deposit to the account, thus helping it to grow more quickly. Getting kids familiar with the bank is another important part of raising financially smart children.

Parents should also consider turning everyday trips into teachable moments. At the grocery store, Mom or Dad can make sure that children are beginning to understand the cost of various items that are placed in the cart. This may include discussing budgets with the child, and then asking the boy or girl to find items that have the lowest prices. This becomes a fun activity for kids to complete, while still providing them with valuable information that they will need to master as they mature.

"It's essential that kids get familiar with these concepts at a young age, but there are plenty of fun and engaging ways to make sure this happens. When children grow up learning about the importance of saving, they're more likely to continue these habits into adulthood. Regardless of a kid's age, there are always appropriate ways to cover such important topics as these," notes a team member at Little Hands Learning Center.

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Little Hands Learning Center provides educational and fun experiences for all pupils. Professionals instruct the children, and carefully tailor lessons to these kids' intellectual, physical, emotional, and social needs.