Tips for Young Consumers: Concrete Ways to Teach Children About Saving Money

In our society, children quickly become apprentice consumers, whether we like it or not, and learn to be shrewd negotiators to get the items they desire. This can sometimes be a headache for parents. In this world of consumption, financial education for children is important. To help them learn about finances, one of the first basic concepts to teach children is saving. Helping children understand what they spend on an item or activity they wish to do is important. I therefore suggest three interesting tips to get children aged 4 to 12 to handle money and better understand the reasons for saving.

The vacation box

Spring has finally sprung, and it's almost time to plan summer vacations. Why not get the children involved? Once the destination is chosen, sit down as a family with old magazines or images you've printed beforehand. To do this, you'll also need a cardboard box (about the size of a shoebox), a glue stick, and scissors. During your family council (to discover in the monthly Chef.fe de famille!), you can discuss upcoming vacations and invite the children to decorate your vacation box and decide on a wish to fulfill. Wishes can vary greatly from one family to another and from one vacation to another. You can save money to go out for ice cream as a family, go to a special restaurant, or attend a show. This will also be an opportunity to discuss the costs you will incur so that the family can enjoy these activities.

The goal of the vacation box is to invite the whole family to contribute and deposit small amounts of money over the weeks. Children will see the amount accumulate, and you can discuss the goals for fulfilling the wishes expressed. This is a great way to mobilize the family towards a common goal and encourage children to participate, even minimally, depending on their age. Some will choose to deposit any remaining change from a trip to the candy store with Grandma into the vacation box, while others will want to offer their services to neighbors to earn small amounts of money.

The magic jars

The "magic jars" trick is a strategy popularized by Gail Vaz-Oxlade to help children see the choices they can make with their money. The author recommends giving a weekly allowance (according to your means) so that the child can handle money.

To implement this tip, you will need three jars (the magic jars). Search your recycling bin and choose three that you can ask your child to decorate. Then, label each jar. The first will be the jar where the child chooses to put the money they want to save. It's interesting for the parent to add interest when the child chooses this option. According to your budget, you determine the amount that you, as parents, can add. For example, for every dollar the child deposits, you can deposit 25 cents.

The second jar will be for expenses. This is where the child deposits the money they want to keep for small expenses, such as buying a small treat. Don't forget to remind them to bring small amounts of money when you go to places where your child usually asks you for money for a purchase. For example, if your child usually asks you for a slushy after their hockey game at the arena, remind them to bring their money so they can make their purchase themselves.

The third jar is for donations or gifts. This jar is dedicated to money set aside for gifts. This is another value that can be instilled in children using the magic jars trick. It can be rewarding for your child who wants to give a small gift to their brother or sister to dip into their donation jar and make the purchase themselves: a great exercise in autonomy that will create pride in your child! For the magic to work, it is interesting to accompany your child when they receive their allowance. This way, you create great opportunities to discuss the use of money and the importance of saving and clearly identifying their needs and wants.

The 26-week jar

This is a challenge for children who have a specific goal in mind or a dream item they covet. To implement this tip, you will need a jar (Mason jar type) on which you will ask your child to write "26 weeks" (you can use Sharpie-style markers). You can choose 26 weeks or another timeline. Depending on your child's goal, you can help them choose the timeline or recommend one to make the exercise realistic. Over the weeks, your child accumulates money in it to achieve their goal. It can be interesting to stick a photo of the desired item or the desired experience on the lid of the Mason jar as motivation. This way, when the child gets an invitation to go to the convenience store to buy candy and reaches into their jar, the image on the lid will remind them of their savings goal. They can then make their own decision, but will sometimes need your support.

Sometimes, when using this trick with children, the goal changes or disappears along the way, and sometimes parents decide to suggest opening a savings account to deposit the money.

Here are some tips to guide your apprentice consumers in their savings learning. These tips can also help them learn to make good decisions about their money. Furthermore, these strategies can help you teach children the difference between wants and needs, in a world of apprentice consumers where they are bombarded with advertisements!

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