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As a young girl, I often watched as my mother placed three or four crisp dollar bills into my older brother's eager palm each Saturday afternoon. Desiring to experience the same level of joy as did he, I asked my mom why my brother received money each weekend. She smiled, and she told me that he earned his allowance by doing chores around the house for her. As I was still very young, I couldn't do a lot, but I wanted to earn an allowance, too, so I asked my mom what I could do. Since I was only five years old, my mom gave me small things to do for which she would pay me a quarter. Though this wasn't a lot of money, it felt wonderful to have money of my own which I could hold in my hands.

At first, I spent each quarter that I earned on gum and little toys that I bought during trips with my mom to a local shopping mall. My mom would often tell me that I could afford to buy nicer toys if I held on to my money for a little while. Still very little, I didn't heed her good advice.

After about two or three months, I began to realize that I would need to save my quarters in order to buy the toys that I truly wanted. I chose to place my earned coins into a little piggy bank that I had received as a gift. I liked to shake my piggy bank to hear the jingle of the coins as they accumulated. Soon, I started to look for change in cushions that had fallen out of pockets that I could put into my piggy bank, as I was determined to save money for the bigger toys that I wanted to have.

The reason for this story is to illustrate the process that I went through to realize the importance of saving money, a lesson that is vital for a child to learn early. Allow your child to make mistakes as they learn how to hold on to money, learn from those mistakes, and learn their own strategies and reasons for saving money. Of course, your children need guidance from you, too, so don't hesitate to give them little nudges in the right direction when you think it is needed.

Tips for Helping Your Children to Become Good Savers:

1.)Decide on an appropriate amount of money to give to your child at a
scheduled time. Stick to that schedule.
2.)In the beginning, give him the opportunity to spend the earned money as he
chooses. Let your child feel as if he is in control of his money even if he seems
to spend his money immediately after earning it.
3.)As time passes, listen to what your child tells you as he makes choices about how
to spend his money so that you can gauge whether or not he is ready for further
instruction in saving strategies. One strong indicator of his readiness will be
increasing frustration with his inability to purchase more expensive items. Start
the discussion by posing questions that will allow him to think about ways to
reach the purchase price of the toy he really desires.

Other Ideas:

a.) Keep a chart of his spending habits on a wall. If he has a certain item
that he is hoping to buy, place a marker that shows the "distance" he will
have to go before he can afford the item. Ask him to mark the chart each
time he earns money. This will allow him to see how he is progressing, as
well as know that you are also aware of his spending habits. Discuss the
chart on a regular basis.

b.) Give him a few pennies for a mutually agreed upon amount
that he is able to save.

These early lessons have increased my awareness of money as an adult. For example, I enjoy making a financial budget for myself that I keep in a binder, as I find it to be satisfying to be in control of how much money I have, and I take a lot of pride in monitoring my spending. Using the strategies outlined in this article, any child can master the habits of a good saver and learn to value his money.

Learn more about this author, Colleen C.
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