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Teaching Students About Saving Money: What You Want To Know

August 6, 2024

Essential Financial Literacy for Kids

Learning to save money is a crucial skill. When students understand saving, they build a strong foundation for a bright financial future. In 2022, The Nation's Report Card on Financial Literacy gave Indiana a "B" grade._[1] Our students’ understanding isn’t bad, but it could improve. So, the more you teach students at home, the better.

Early lessons in saving help young learners develop good habits that last a lifetime. Saving money means they can handle emergencies, avoid debt, and reach financial goals. Here’s what you need to know about teaching students about saving money.

How To Teach Students About Saving & Spending

Teaching students about saving can be enjoyable and practical. You don’t have to make it a chore. To keep it simple, use basic financial principles as your guide.

Start with these basic steps:

Encourage them to set clear goals. Help students set short-term and long-term savings goals. This makes saving tangible and rewarding.
Coach them on how to create a budget. Show students how to make a budget. Teach them to track their income and expenses so they can see where their money goes.
Use real-life examples. Share stories and instances that illustrate the benefits of saving. This makes the lessons more relatable and interesting.
Help them open a savings account. Encourage students to open a savings account. This introduces them to the banking system and helps them see their savings grow.
Teach the difference between needs and wants. Help students understand the difference between essential expenses and things they just want. This helps them prioritize their spending.

Teaching students about saving can be enjoyable and effective when you take these simple steps.

Tips for Teaching Children & Students About Saving Money

By starting early, making lessons fun, and leading by example, you can help students develop solid financial habits. Try to make it a rewarding progress, use technology, and stress the importance of financial literacy. Here's how you can make saving lessons effective and engaging for students.

1. Start Kids Early

It's never too early to start teaching kids to save. Even young children can learn the basics of saving. Use a piggy bank to show them how saving works. As they get older, introduce more complex concepts like interest and budgeting.

You might also like: How To Teach Preschoolers About Money

2. Lead By Example

Students learn a lot by watching parents and mentors. Be a good role model when it comes to saving money. Show your students how you save and budget.

Practice your own smart money habits, for example:

Set aside a portion of your paycheck for savings.
Create a monthly budget and stick to it.
Use coupons and shopping sales to save money.
Save up for big purchases instead of using credit.

At every opportunity, share your financial goals and explain the ways you work to achieve them.

You might also like: What’s a Financial Checkup and Do I Need One?

3. Reward Saving Money

Positive reinforcement works wonders. When students reach their savings goals, reward them. This can be something small, like a treat or an outing. Rewards motivate students to keep saving.

Keep in mind that interest-earning savings accounts, certificates of deposit, and money market accounts grow automatically. The earnings on these accounts can be enough that you don’t need to offer personal incentives.

You might also like: What is a Money Market Account and How Does It Work?

4. Make Lessons Fun

Learning about money doesn't have to be boring. Use games and activities to make saving fun. For example, play a savings challenge where students save a small amount each week. Then, see who saves the most by the end of the month.

Active learning means getting students involved in the learning process, not just listening to lectures. According to the Center for Innovative Teaching and Learning, interactive lessons help students learn better, think critically, remember more, enjoy learning, solve problems, and recall information._[2]

5. Use Technology to Teach Kids

There are many apps and online tools that can help teach your child about managing their student finances. Find age-appropriate tools that make learning about saving interactive and engaging.

Helpful savings tools might include:

Digital banking apps that show real-time savings growth.
Financial literacy games that make learning fun.
Budgeting apps designed for kids.
Interactive resources that teach money management skills.
Virtual piggy banks to track savings progress.

With technology, teaching students about saving can be much easier.

You might also like: Centier to You Launches Free, Online Budgeting E-Course

6. Discuss the Importance of Financial Literacy

Explain why financial literacy is important. Knowing how to manage money affects every part of life, from paying for college to buying a home. Stress that being financially literate means having control over their future.

Explain to students that saving will help them:

Save for emergencies.
Plan for big expenses.
Avoid debt.

With good money skills, your student can make smarter financial decisions and achieve their goals.

Guide Your Student to a Bright Future With Centier's Help

Teaching students & kids about saving money equips them with essential life skills. They learn to set goals, make budgets, and prioritize spending. These lessons help them become financially responsible adults. Start teaching kids about money early, make it fun, and use real-life examples. Remember, the habits they form now will shape their financial future.

Ready to guide your student to a brighter financial future? Centier is here to help, every step of the way. Bring your student into a branch today to open a free student checking account with Centier Bank.

Sources:

[1] https://www.indianasenaterepublicans.com/teaching-students-financial-literacy-1

[2] https://citl.indiana.edu/teaching-resources/evidence-based/active-learning.html