Now that my daughter is 10 I think it is time to start teaching her how to save. With starting up a new business, I am going to look into getting her a savings account. This is the perfect time to teach her about responsibilities when it comes to money. She has always been the type when she gets money she has to spend it.
My husband and I have always tried to maintain some what of a savings account, this has saved us many times when we have been in a jam. We would simply take 10 to 20 dollars from his check each week, and place it in the bank. I personally found this to be the easiest way to get us to save. When it is a small amount you hardly notice a difference, and within time, the interest itself will help bring the balance up.
One of the first things I will be teaching my daughter is looking for the bank that will give her the best rates, and one with no monthly fees. When banks charge you those monthly fees it defeats the purpose of the savings account. I think she is a bit to young to teach her about overdraft protection, but as she gets older, and I start giving her more control over her account we will go over all the real responsibilities.
My first step in teaching her about savings, will be finding something she really wants and costs a little bit of money. We will start placing her money that she earns in the bank, and we will save to reach that goal. Once she reaches her savings goal we will start over. Then as she gets older hopefully she will be able to pick out what she needs and what she wants.
Teaching financial responsibility at a young age is a must!
How do you teach your children about savings, and responsibilities when it comes to personal finances. Do you do a lot of charging to the credit cards, or are you the type that if you don’t have the money, you don’t purchase the item?