Savings

Children and their piggybanks
Compulsive shopper or penny-pincher? It's all about balance...
A reason to save
Piggy banks and wallets: Not the same thing!
Gifts of cash - How to keep your child from blowing it!
It's always hard to save money for a child or a teen!
Expect the unexpected
Learning the difference
Learning how to save: Does money received as a gift count? Hmm...

Children and their piggybanks

Your children surely have a piggybank where they stash all of the money they receive. They likely keep it in their room where they can gleefully watch their savings grow. It's hard to convince them to part with their riches and deposit them at the caisse, since they perceive this event as a loss. Here are some tips that might help:

• Together with your children, count the money in the piggybank.
• Decide together how much to deposit.
• Leave some change in their piggybank so they don't feel completely broke.
• Explain that the caisse will keep their money in a safe place and that extra money (called "interest") will be added to the initial deposit. Reassure them that the money deposited at the caisse belongs to them and that they can withdraw it when they need to.
• Go to the caisse with your children to make the deposits into their accounts.

Compulsive shopper or penny-pincher? It's all about balance...

Your child is old enough to get an allowance or earn a bit of money by doing odd jobs?

Is he or she the type to spend it all very quickly or hold onto it forever? Saving money is an excellent habit! But treating yourself without regret is good too.

Help your child to find a balance between saving and spending by suggesting a reasonable percentage (like 20%) of his or her weekly or monthly income to be put aside.

That way, kids can buy themselves little gifts while learning how to save.

A reason to save

Saving money can be hard for anybody, young or old. Suggest that your children set realistic short-term objectives.

Putting a photo of their dream project (a new bike, skateboard, etc.) in a visible spot in your teen's room can serve as motivation.

You'll see, every time they look at the picture, they'll think of the project.

Think it might not work? When you plan a trip, don't you look at brochures of your dream destination for inspiration? Think about it. Try with your children and you'll see!

Piggy banks and wallets: Not the same thing!

When children start buying things for themselves such as books or compact disks, their parents often agree to give them a weekly allowance. It is important to start teaching good habits right away, making suggestions about budgeting for immediate needs and savings to achieve a dream.

A great tip: suggest they keep their savings in a homemade piggy bank. Also get a wallet for weekly allowances.

Another idea: give the weekly allowance in small denominations, like 10 dimes rather than a dollar: save 50 cents, spend 50 cents for a treat!

Gifts of cash - How to keep your child from blowing it!

Your child received cash as a gift? Make sure this unexpected money does not become a source of conflict. With young children, it is usually easy to figure out what they want. If it is reasonable, be fair - don't be too severe and let your child enjoy the gift. That was surely the intention of the person who gave the gift in the first place. What's important is to encourage open dialogue and let your child decide. If the gift is a significant amount of money, suggest that your child save part of it for a project.

It's always hard to save money for a child or a teen!

All parents and teachers agree. However, there are simple rules to follow.

• Suggest they establish an objective or a dream.
  
  If you think about it, adults usually save with clear objectives in mind: a new car, a house, retirement income... or even unexpected expenses. There is always a goal in saving.
  
  
• Obviously, for a young person, retirement or contingencies is maybe not the best motivation. But saving for a bicycle, a gift for a friend or a ski trip, is concrete and realistic.
  
  
• Another tip: For small children who are just starting to learn, ask them to choose a project that can be realized in a few weeks. It's much more motivating and educational!
  
  

Expect the unexpected

Get your child accustomed to contingency planning, while of course keeping age-appropriateness in mind. Suggest putting small amounts of money aside for emergencies, to be hidden in a special place in the child's wallet or backpack, for example. If an unexpected situation arises, it could come in handy. It's never too early to learn foresight.

Learning the difference

Teach your children to use a piggybank for savings and a change purse or wallet for pocket money. Explain that the money in the piggybank is for something special, whereas the money in the purse is for everyday expenses like bus tickets, snacks or a novelty pencil, for example.

Learning how to save: Does money received as a gift count? Hmm...

Yes, if the child was counting on the gift to reach a savings goal. No, if the money was a surprise. Using unexpected gifts to reach a goal can give children a false sense of achievement, causing them to neglect their regular savings habits. It's better to deposit gifts for future projects.