Childildren and teenagers alike all have something in common: They want things.

Sometimes, the parents are able to buy the items themselves, but sometimes, it would be better for the children to earn the money themselves and learn how to set up a budget, or save up money.

The best way to do this? Open a savings account for your child. The easiest way to get started is to put Christmas funds, Birthday funds, etc. into the savings account from the start, and encourage them to save up instead of spend.

Teach them about interest, and how they could benefit by not spending all their money at once.

Interest rates are not very high, but children need something to urge them on. Teenagers will love having large sums of money that they are in control of, and so will kids.

So the next time your child wants something for Christmas, perhaps take the time to explain to them the benefits of a savings account. It may seem complicated to them, but all you need to do is deposit their earnings or Christmas/Birthday funds they don’t have a use for yet into their savings account.

This will teach them responsibility, and to handle finances and money.