Why is saving so important?

Saving is a way for children to:

• Treat themselves to something on their wish list
• Set money aside and see it build up in their account
• Share with those in need and donate to charity
• Plan for a rainy day

How to encourage children to save up for something

 

Saving can empower children to work toward getting something they've been looking forward to. It can also be a stepping stone to a little more independence. There are lots of benefits to saving, but children can feel like they're missing out when they put money aside. The key motivator is for them to have a goal to work toward. That way, saving won't seem like a sacrifice. Watch this budgets and savings video. It's a great introduction to the fundamentals of financial literacy.

 

Piggy banks and savings accounts

 

Has your child shown an interest in saving? Here are two ways to help them grasp the basics.

 

1. Using a piggy bank
   
   Feeding money into a piggy bank is a tangible way to watch it grow. It's easy for your child to see cents turning into dollars. And there's something so satisfying for kids to break open or empty out their piggy bank and see how all the money they've saved has added up. It's a good idea not to let a piggy bank get too full. Your child might want to move some money into their account once in a while—or spend some of their hard-earned savings!
    
2. Using a savings account
   
   Putting money into a savings account makes it easier for your child to resist the urge to dip into it, because it's not right there in a piggy bank for them to see.
   
   Many parents like to count the money in a piggy bank with their child before they deposit it into their account. It's a great way for kids to get used to handling money and doing math with real dollars and cents.

However your child chooses to save, you can count money together using this handy counting grid. It's a useful tool for learning the value of coins and bills. And it makes it easy for kids to not only calculate the total amount in their piggy bank, but also keep track of how much money they put in or take out, in case they want to make a deposit or buy something—and that's an important financial skill.

 

Account statements are helpful too when it comes to tracking children's savings progress. They'll see how small amounts they put into an account can add up over time. Here's a reminder of how to log in to your child's School Caisse account and view account statements.

 

What parents have to say about saving

 

"When it dawned on my kids that their monthly allowance was theirs to keep and they could do what they wanted with the money, they went right over and put it in their piggy bank! Now it's up to them how they choose to spend what they save. They can buy themselves new toys and clothes, or treat themselves to an outing with friends. I'm so proud of them."

- Anita, mother of Joe (8) and Rosalie (11)

 

"My daughter's going on a school trip to the States at the end of the year. She's started to help out more with chores at home, and she's putting more of her allowance to one side. With the work she's done, she's already managed to save more than half the amount she needs, and there's still plenty of time before the trip!"

- Yvan, father of Clara (12)

 

"I often talk about the future with my 2 boys. They're still too young to understand how investments work, but I tell them if they invest a dollar well, they'll get more than a dollar back. That's my way of showing them that saving is always a good idea."

- Victoria, mother of Adam (6) and Louis-Félix (9)

 

"Every year we do an activity in class. Each student is given a sum of pretend money and 2 envelopes: one for savings and one for expenses. Then I ask them to think about their dreams for the future: what kind of house will they live in, what car will they drive, will they have kids, that sort of thing. When that part of the exercise is done, they can choose to take the money now, knowing they'll only be able to afford select goals, or save it all so that they'll be able to achieve all their ambitions over time. That always gives us plenty to talk about in class!"

- Amina, Grade 3 teacher

 

"We've always been open about our monthly budget, so our kids know all about debt. They know their parents have mortgage and car payments every month, and that's just part of life. The sooner they start saving, the sooner they'll be able to pay off their own debts when that day comes."

- Vlad, father of Manni (7) and Jason (8)