How can you introduce your children to the art of saving? If your youngsters are of elementary-school age, here are a few guidelines that should help you get them interested in learning how to save by setting a specific goal.

Set Specific, Realistic Goals

First of all, for children to be motivated to save, they have to feel their efforts will be rewarded within a reasonable time. Have them set a specific, realistic goal: organizing a family or sports activity or buying an item they've been dreaming about for a long time. Ideally, they should choose this goal themselves-provided it's reasonable. They should also be sufficiently interested in the goal to be motivated to reach it.

Make Sure They Have Money to Put Aside

Set up a budget with them and decide on exactly how they'll put money aside (weekly allowance, payment for doing chores, gifts, etc.), being sure to take personal expenses into account. You can help them decide on a timetable for the different stages involved (reaching 25% of their goal, for example), with rewards as you see fit. Help them visualize how much progress they're making with aids such as a barometer-style chart. A piggy bank is also a good way for youngsters to save money. As it gets heavier, they realize their efforts are working and their goal is within sight.

Stick to the Arrangement

The important thing is to encourage perseverance and discipline. Since the main point of the exercise is to teach them to save, greater emphasis should be placed on the fact that they are saving on a regular basis than on the amount of money saved. If they decided at the outset to save $2.00 a week, encourage them to stick to this arrangement-even if they receive a money gift, for instance.

Show Them the Value of Money

So they'll understand they can't have everything, introduce your children to the value of money in relation to certain items. Help them determine their basic needs and their secondary needs. Depending on how old they are, let them handle money and familiarize them with how much different coins are worth, or suggest they get small gifts for people they like.

Celebrate Goals Attained

It's extremely important to reward children for reaching their goal (or a significant stage in the process). For example, you might organize a special activity for them, make their favourite dessert, or give them a small amount of money to add to what they've saved already.

Once they attain their goal and are ready to buy the item they've been dreaming of, go to the store with them - but make sure that you let them pay for it themselves. The pride and satisfaction from attaining this first goal will encourage them to save for other more costly things.