Cashing in: Top tips for teaching children the importance of saving money

Having a grasp of finance from an early age will stand them in good stead for the future.

Here are some ways parents can encourage both younger children and teenagers to save:

1. Teach your children about money - It's best to do this as early as you can and to show their different denominations so they get use to what they are. Take the time to really explain to your children the value of saving money.

2. Use a savings jar or piggy bank - This will not just be a way to store their savings, but it will also give them way to see or feel the weight of their money mounting up each week.

3. Make a savings chart - once your child knows what they want to save for, work out how many weeks it will take and draw a chart. They can then represent each week with a box and put tick once their pocket money has been put aide

4. Set a good example - let your child see that you save money too. Put money in a jar while your child is watching and tell him or her it’s your savings jar. This should further inspire them to save as they will want to be just like you.

5. Open a savings account - you can set up an account with a bank or building society on behalf of a child. They can start managing their own account once they reach the age of seven. Some providers will include a gift with the account, like a money box.

6.Offer your children earning opportunities - set a monetary value to chores such as taking out the rubbish, washing up or walking the dog, and encourage them to save the money they earn. This will help their savings to grow further and inspire them to continue to add to it.

7. Match their savings - if you can afford to do so, some parents find it useful to match their child's savings to give them an incentive and teach them about gaining interest.

8. Keep records - Make sure they have a notebook to use only for keeping track of their money. They should write down any money they spend and how much they saved. Seeing it in black and white will inspire them to keep increasing the amount they have put by.

9. Use money challenges - At the supermarket give them money to go shopping with and a list of what items they need to buy but tell them they can keep any change left over. This will teach them the value of looking for ways to save and get them to see the costs of certain items that they may not have considered.

10. Get them into the habit of always having something in reserve. Help to teach them the importance of having money left for a 'rainy day' by encouraging them to save a bit more than they need for the item they want to buy so they have some money left for later.