Teaching Children To Save Money - 7 Simple Tips

Teaching children to save money starting when theythe world of the rich. People become rich through
are small is easy. Every child learns very quickly thatsaving and investing wisely, not by earning a great deal
money buys things they want. They already know theof money. The typical millionaire in America has
value of money, money concepts are taught in school,appreciated assets from years of careful investing
and the basic mathematics involved. Here a 7 simpleand saving. Show your children how a frugal budget
tips to help you get them saving and investing.allows you to save more.
1. 3 things to do with money. They can let it sit in their5. Open savings accounts early. Take your children to
wallets and purses, spend it, or save it and watch itthe bank as soon as they understand basic money
multiply. Drive to different parts of your city with yourprinciples. Open savings accounts in their names and
children and point out different living conditions. Somego over the statements with them as they come.
spend everything and never get ahead. Others let their6. Give your children choices. A big birthday party, for
money sit idle and it never increases. But the wealthyexample, is expensive. What if your children would be
know how to spend what they need and then savejust as happy with cake, ice cream and some games
and invest the rest.with their friends? Say something like, "A big party like
2. Help your children set goals. Ask your children whatwe had last year cost $200.00. What if I put $185.00 in
they want when they grow up? Every child wants toyour savings account and just spent $15.00 this year?"
be someone like a doctor or a fireman but what doSome of your children will still want the big party but
they want? How do they want to live? Do they wantyou might be surprised to learn that some will be
to be poor or rich? Help them set some goals earlylistening to you and will choose the savings option.
and explain that proper saving and investing is a huge7. Time deposits. Since your children will not be
part of getting what they want.touching the money anytime soon, take advantage of
3. Help put goals into action. Develop a rough financialtime deposits for higher interest. This will give the
plan with them. This is great fun and you will learn a lotsavings a boost and help you in teaching children to
by teaching them. If you have a financial planner yousave money.
could introduce them to your children. This will help yourTeaching children to save money should be fun. Let
kids see that saving and investing is serious business.them know this is for their future because you love
4. Be frugal. If you have not already, read the bookthem. You will enjoy this time together.
"Millionaire Next Door." This really opened my eyes to