One incentive to get children to save is to match their savings contributions dollar for dollar. Other options include matching 50 cents for each dollar saved...or even two dollars for every dollar saved. Of course, you get to set the rules and can choose any amount you want.
The important part of matching contributions is that you are creating a built in incentive to encourage saving behaviors. You can also establish guidelines for spending once a matching contribution has been made. While it is important to monitor how the savings match is being spent, it is also a useful way of teaching other important money related lessons such as planned spending, understanding the difference between wants and needs, etc.
As a parent, your ability to match savings depends on your own financial situation. The good news is that no matter how you decide to structure a savings match for your children, the end result is that they will be more money savvy and develop an understanding of just how important savings really is.
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