Kids learn to save money from you!
It’s never too early to start teaching your children the importance of good money management. Check out these easy and smart ways to get your kids on the right track when it comes to savings.
- Impulse buying can be a huge problem. Set a dollar amount and agree for any purchase over that amount, your child has to wait 24 hours. That “must have” feeling lessens as times goes on.
- It’s so easy to swipe a debit or credit card; children might not understand those cards have limits. When the credit card bill or bank statement arrives, sit down with them and go over the charges. Also show them the deposits and explain how each card swipe is deducted from those deposits.
- When your child is old enough to receive an allowance, help them open a savings account. Then require they deposit a portion of their allowance along with any cash gifts into this account.
- Once that savings account is set up encourage saving for special things. It’s never too early to set financial goals.
- As a parent we always want to protect our children but it’s important to let them learn from their financial mistakes. When they run out of money or don’t have enough for that special purchase don’t step in and make up the difference. This teaches both wise financial decisions and the value of a dollar.
Photo: Easy Street Investing