E H T G N I F F U ST
K N A B Y G PIG IDS ABOU TEACHING YOUR K
T SAVING.
Helping your child develop good saving habits will put them on the path to financial independence as they mature.
HERE ARE TIPS TO GET STARTED:
• Make sure they have money to save. Give an allowance tied to ageappropriate chores.
• Ensure they save their own money. Discuss and set up a plan for how much of their money they must save (like 10% of their allowance and 50% of birthday money).
• Talk about money. Whether you are at the store or paying bills, teaching kids daily financial concepts is key to their understanding the importance of money.
• Teach the difference between “needs” and “wants.” This concept is the bedrock for all the financial decisions your child will make in their lifetime.
• Use some of their money for purchases. Match their savings for a desired purchase, such as video games or clothing.
• Match their savings. Matching their savings, dollar for dollar, is the quickest way to double their money and develop their saving habit.
• Let them see what they’re saving. When they’re young, put their money in a glass jar. As they get older, open up a savings account and teach them how to make deposits, withdrawals, and balance it.
• Teach the concept of taxes. The comedian Bill Murray said it best: To teach your kids about taxes, eat 30% of their ice cream! Most importantly, be a good example for your kids; they spend their lives watching and copying what you do. Talk with them about how your family saves and makes money decisions. Also, demonstrating why it was not a sound financial decision to make a certain purchase may be one of the best financial lessons you can teach them.
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