Teaching kids about saving might sound like a challenging task. Patience and long-term planning aren’t always their strong suits, and it’s an entirely new concept. Even for adults, finances can be tedious and daunting – but they don’t have to be.

Set your kids up for a bright financial future with the right education and mindset when it comes to saving. You might even have fun and learn a little along the way! Here are a few things you can start doing today, to help the kids in your life learn good financial habits from an early age.

1. Talk About Your Finances

Finances can be a “taboo” topic for some parents, but that makes money a bigger mystery for kids. Make finances realistic by talking about and showing your monthly budget, even if it’s a simplified version.

This can give kids a concrete example to understand. If you have older kids, you can also show them a simplified version of the process you go through to prepare, update, and manage your everyday budget. That insight may go a long way in demonstrating how they can prepare for the future.

2. Create Saving Goals Your Kids Care About

It’s a lot easier to save when you’re working toward something you want. The next time your child asks for a new toy at the store, use it as an opportunity to encourage good saving habits. For example:

• Explain how much the toy costs
• Show how long they’ll need to save
• Set the goal and remind them of it often

If they want to dip into their savings before reaching their goal, talk about how close they are and how far back another purchase will set them.

3. Pick a Piggy Bank They Want to Use

The right saving container might be the solution if your child is struggling to save money. If they have a favorite cartoon or superhero, buy something with that character. If they want to paint, write, or put stickers on it, let them make it their own.

Keep in mind that interests change pretty quickly at that age. Even if they loved a piggy bank a year ago, it could be “for babies” now. Check in once in a while to make sure they’re still excited to put away money for later.

4. Set Rewards or Match Their Saving Goals

Small treats and encouragements can go a long way when a young saver is doing well. Maybe it’s an ice cream cone for keeping up with their goals for a few weeks, or a match amount to cut down on the time they need to wait.

Make sure whatever reward you offer doesn’t overshadow their main saving goal, and they are the ones who are building the patience to save their money.

5. Open a Kids' Savings Account Just For Them

Introducing financial concepts early can make them more comfortable in the future. Consider opening a savings account for your kids, so they have a sense of ownership in their finances. Even if the only deposits are overflow from their piggy banks, it can be a great experience for them (and you) to see their savings grow.

You can even look for savings accounts specifically designed for kids, like Western State Bank’s Lil’ Buckaroo Savings Account. Account holders ages 12 and under enjoy a savings account along with free membership in the Lil’ Buckaroo Savings Club. Membership comes with invitations to events, a newsletter full of activities and education, and more.

Contact a Western team member near you to learn more!