April 28 is Teach Children to Save Day!
April 28 is Teach Children to Save Day! Sponsored by the American Bankers Association Education Foundation, this day serves as a great reminder to parents and caretakers that it’s never too early to help children learn how to manage their money.
How to Celebrate
Talking about savings, investing, and finances does not have to be boring! There are many fun ways to enjoy the process of learning together. And although the official celebration is only for one day, we encourage you to incorporate the activities listed below throughout the year.
- Play a game about money. For those families (or teachers) who want an activity that teaches kids about money, consider playing Monopoly or The Game of Life. These board games may not necessarily be all about saving but can demonstrate the value of money while also making the process entertaining. For those who prefer to keep it digital, there are many apps and games that encourage similar learning activity that are available for download.
- Set savings goals. A great way to motivate children in setting savings goals is by helping them to list out specific activities or goals they may want to accomplish. Fill up a savings jar with coins, tell them stories about the personal experiences associated with saving this money, and help them to envision what they would be able to do once they save up a certain amount.
- Open a savings account for your child(ren). Monitor their account and watch it grow together. Take the time to show them what things cost. The next time you are at a store together, and they want to buy a new toy, direct them back to their savings account and ask them to consider whether this purchase is worth the amount they want to spend and if they have enough in their savings to purchase it themselves. If they decide to purchase the item, have them pay for it. The act of paying with their own money will directly demonstrate how much the item costs and how much is needed in savings to pay for it.
- Demonstrate the differences between needs versus wants. Explain how water, food, clothing and shelter are necessities and teach them the importance of placing their needs before their wants – even in your family’s daily shopping. Wants are items that we do not need to live. For example, we can live without going eating out at restaurants, buying a new television or the latest smartphone. Understanding this difference will help them evaluate their purchases in a smart way that will set them up for financial success in their future adult years.
- Get involved. For more resources and possible events in your area, visit aba.com/advocacy/community-programs/teach-children-save/teach-children-to-save-faqs. Additionally, you can reach out to the Tennessee Securities Division by visiting tn.gov/securities, or emailing firstname.lastname@example.org.
Rachel Carden serves as the Director of Investor Education for the Securities Division of the Tennessee Department of Commerce and Insurance.