How to teach your child to contribute to savings. Here are 3 parenting tips.

Learning to budget and save money is integral to adulthood, especially when ensuring your funds are appropriately allocated and your bills are paid. After all, buying a house, a car, and raising a family is not cheap. And while, as adults, we know this to be true, how can we ensure our children learn to contribute to their savings early on? 

Getting your child excited about saving money helps provide them with some incentive. In the same way, banks offer interest rates when your account remains above a certain balance. You can offer them a t-shirt, a new piggy bank, or print out a certificate to celebrate their achievement. Once they've reached a set amount of money saved, reward them with an item you choose. 

1. Create a chart.

Children are visual and excited when they see their accomplishments on a chore board or chart. Use this to your advantage. Create a chart with an item your child wants. Based on their allowance, determine how long it will take them to get that video game or the new bike they want from a universal wish list such as Wishfinity. Your child gains a sense of pride by seeing savings efforts progress and learns to associate that joy with saving money. Creating a lifelong emotional tie to the act of saving is a surefire way to get them to save now and in the future. 

2. Prioritize.

Before your child goes and spends all of her hard-earned money on a pricey new laptop, remind her that once that money is gone, it's gone. She won't be able to spend it on other things that come up (and you aren't going to take pity and offer to subsidize her future spending). Naturally, you'll want to stop her from making such an expensive purchase, but if she chooses to go ahead with the big purchase, that's okay. She decides to make, and she'll learn the responsibility of making a large purchase when she can make them. 

3. Talk about it.

Don't shy away from discussing finances around your children. Often, we try to shield our children from the harsh realities of life, including financial hardships. If you and your partner have issues with cash flow, discuss ways to stop spending as much money while your kids are in the room. Hearing you discuss savings, budgeting, and other financial matters will be an excellent way for them to understand the importance of being financially responsible and prepared.