Teaching your kids to save money is an essential lesson, but can be difficult to get across. A major reason for this is giving the “why” behind saving money. Why save money when I can spend it on a new toy or candy bar today? 

To help your children learn the value of saving and start practicing it themselves, they need a goal! This should be something that is normally out of their reach financially, but with some saving, could purchase. This can teach them the value of saving money for a goal and give them the practice of patience required in saving money. Read some examples of goals your children can start saving for.
 

A More Expensive Toy
 

Everyone with kids has experienced walking through the toy aisle and them begging for that one toy that is just too expensive. Maybe it’s a new playset, a Power Wheels, or the latest toy fad, all of which are expensive to buy. You could always give the half-hearted promise that they might get it for their birthday or Christmas, or suggest they start saving for it!

Take a note of how much the toy costs and when you get home, detail out how long it would take your child to save up for the toy. If your children get an allowance or can earn extra money doing chores around the house, this can lead to a simple plan on how much work they’ll need to put in to buy the toy.

A great tool to help with this first time saving project is Pioneer’s Super Star Youth Savings account. Rather than having the temptation of money in their pocket or in their piggy bank, keeping it with Pioneer helps keep them on track and their money save.
 

A New Video Game Console or Game
 

With the PS5, Xbox Series X and Nintendo Switch OLED, your children might be drooling over the latest video game console and games. But these video game consoles and games are expensive, with consoles costing around $500 and games around $70. 

If they are wanting to buy some video games, use it as a chance to encourage and teach saving money for a larger goal. They might want to start mowing a neighbor’s yard for some extra cash, ask for money for their birthday, or pool their money together with their siblings in order to get the necessary money.
 

Their First Car

If your children are teenagers, a really popular and good saving goal is for their first car. Whether they are looking for something to get them to school or to their new job, saving up for a car can be a huge learning opportunity.

First, you should help them determine if they want to save up for the whole cost of the car or enough for a down payment. These can then influence how long and how much they need to save. 

They should be prepared for the extra fees and expenses that go with their first car. Title fees, insurance, gas, and maintenance are all things they’ll need to pay for. Encourage them to save a little extra each month to cover extra car expenses over the coming years.

To help your children buy their first car, Pioneer offers a First-Time Auto Buyer Loan that comes with extra benefits. We can help your young adult with a Credit Checkup, help explain the auto buying process, and set them up with a $500 share secured VISA credit card to help with the down payment or other fees.
 

Paying for College
 

If your children are planning on attending college, it’s a huge expense that can impact their futures. From an early age, encouraging your children to save money for college can help make it a tiny bit more affordable and lay the foundation for healthy saving practices.

Opening a college fund and saving for it regularly can teach children the habit of setting aside money regularly. A good way to teach this is anytime they get money, from an allowance to birthday money, to set ten percent aside for a college fund. By the time they head off to school, they probably won’t have enough to cover all of it, but maybe they’ll have enough for housing or some of their tuition. 

If you are looking for an extra way to teach saving lessons to your young children, attend our Super Star Youth Savings virtual event! There will be a short lesson to help teach kids valuable money skills including how to save money!

Register for the Youth Event