Teach your children how to save

From making an imaginary cup of tea to shopping at a make-believe grocery store, children love to mimic their parents' lives through play. So when it comes time to teach your children how to manage their money and save, it's important you lead by example too.

“Once your child starts to understand the basic value of coins and dollars and is able to count, add and subtract, they are ready to explore the world of saving,” says Raymond Chun, a senior vice president at TD Canada Trust. “Instilling financial principles and good saving habits in your children from a young age is important, but don't forget they will learn even more by watching what you do when it comes to managing your money.”

Chun offers his advice on how to lead by example and teach your children solid saving skills:

Set a goal – Sit down together and make a wish list of all the fun things you could save for. Help your child select one toy from their list and choose an achievable and tangible item of a similar value from your list. Explain to them how much you both will need to save every week to achieve your goals.

Start saving – Start with piggy banks or jars so your child can see the money growing in front of them. Glue a picture of their goal onto it to get them excited about saving.

Introduce them to interest – Explain that for every quarter they save, you will add a nickel to reward them for saving their money. This will introduce them to concept that money can be more valuable when you save it in a bank.

Track their progress – Saving requires time and patience, so help your kids stay interested in saving by tracking their progress. Consider working together to create a colourful countdown calendar to hang on the fridge that illustrates your savings goals, and use stickers to track your progress.

Communicate – Talk openly and honestly about money with your children. Look for teachable moments every day, like depositing money at an ATM, to show your children how you save and manage your money.

If you need help with managing your money or mortgage, please give us a call (250) 862 1806.  We are here to help you achieve your goals for 2013.

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About the Author

Laurie Baird and Tracy Head are mortgage brokers with Verico Complete Mortgage Services. Together they have over 45 years of experience in the mortgage industry.

As mortgage brokers, Laurie and Tracy spend time getting to know the people they work with and help them understand the mortgage process. They support their clients before, during, and after a home purchase.

Laurie and Tracy are able to offer their clients advice and options. With access to over 40 different lenders, Laurie and Tracy are able to match the needs of their clients with the right mortgage package. They work closely with their clients to find the right fit, and are around to provide support for years down the road!

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