Home School Heartbeat Radio Program

For many adults, the concept of saving money is easy to grasp but difficult in terms of follow-through. Saving money takes much more than a positive attitude, says Home School Heartbeat's Mike Smith.

Mike Smith:
As we continue this week's topic about teaching children wise money management, it is very important to discuss ways to help your children grasp the value of saving. Saving is a habit, and as such, you can help your children form good habits while they're young.

For young children who are collecting coins, give them a place, like a bank, to keep their collection. Consider teaching them the concept of interest by periodically giving them a certain percentage of their saved coins and allowing them to hold it in their hands before placing it into the piggy bank.

When the child gets old enough, help him establish a bank account. Not having the cash on hand will help guard against impulse buying.

Have a conversation with your child about financial goals. Help him establish a long-term goal for that money, keeping in mind the child's maturity and guiding him as he selects a time frame.

For a child in grammar school, a long-term goal might be a new toy or a bicycle in a couple of months. An older child might start saving for a car purchase in a few years.

Regardless of the time frame, challenge your child by giving him an opportunity to experience delayed gratification. When he does finally make that purchase, it will be an extremely rewarding day.

And until next time, I'm Mike Smith.