Teaching about Saving Money

Savings is a concept that is often difficult to explain to children, especially young children. They seem to feel that their parents have infinitely deep pockets and there is no reason to prepare for that “rainy day”. By the time they get old enough to appreciate saving money, they are often set in their habits and it becomes difficult to get them interested in interest!

There was once a children’s tale “If you made a Million Dollars”  by David M. Schwartz and it taught children about the importance of savings. Fortunately the book still seems to be available. Why fortunately?   Because the book is an excellent way to teach children the importance of earning and saving money.

The author has done an exceptionally good job of presenting how work generate income and that if you save that income it will accumulate and then you can even get more money and, if you choose to, after a while would not need to even work. It explains how savings work for you, and that explanation is crouched in a fun and entertaining as well as educational fashion.

It starts with simple jobs and allowances,showing what you can purchase after catching unicorns and such.  It then talks about saving your money and how you can buy more things the more you save. As a babysitter for Ogres, you earn  one million dollars and you can spend it buying a castle or such, but if you save it you will never have to work again as at 6% interest, it earns one thousand dollars per week. With that money the child then sees that they can buy almost anything, most payments aren’t a problem.

Is using fantasy a good way to teach savings? There are other ways, using text books and math, but those are generally for older people. This is for young children. They all live in a fantasy world anyway, with invisible friends and talking animals. They will also remember and learn that savings and work help to achieve goals. They learn it in an entertaining manner that sticks with them.

Teaching anything in a fun and exciting manor is better for any age level. The more you enjoy learning something, the more time you will spend learning it and the more you will retain. It is the principles are what are important, not the actual money. Think about using that book, “If you made a million dollars” and I think you and the class may learn the value of hard work and savings.