Take the youngsters with you to a credit union (or a bank) when you open their savings accounts. I still remember how old I felt when I went to North Carolina National Bank to deposit my birthday money. Beginning the regular savings habit early is one of the keys to savings success.
Don’t refuse them when they want to withdraw from savings for a purchase or you’ll risk discouraging savings all together.
Going to the grocery store is usually one of a child’s first spending experiences. About a third of our take-home pay is spent for grocery and household items. Spending smarter at the grocery store (using coupons, taking advantage of frequently used items when stores offer buy one get/one free, etc.) teaches you how to c save. When shopping, use a list, coupons and compare items by the unit price.
Take children with you to other stores, explaining how to plan purchases in advance and make unit price comparisons and also checking for value, quality, reparability, warranty, etc. Spending money can be fun. Also very productive when spending is planned. Unplanned spending however, usually results in 20-30 percent of our money being wasted because we obtain poor value with many purchases.
Allow young people to make spending decisions, both good and poor. And then encourage a discussion of pros and cons before more spending takes place. Encourage them to use common sense when buying. That means they should research before making major purchases, waiting for the right time to buy, and employing the spending-by-choice technique which is selecting at least three other things money could be spent on, once it has been decided to make a purchase.