Wednesday, June 19, 2013
A Penny Saved Is a Penny Earned
At the end of the week, compensate your child based on his or her performance. Provide your child with a piggy bank or even a jar where he or she can keep his or her allowance. Encourage your child to save some or all of the earnings. Try not to let them spend it all in one place. When the kids have $20 or more saved, take them to the bank so that they can open up a savings account. Many banks have kids' accounts just for this purpose. If you lend your children money for something, put them on a repayment schedule. This will teach them the concept of credit at an early age. Finance expert Janet Bodnar of Kiplinger's Personal Finance recommends these steps: Start early. Start small. Keep it simple. Make it fun. Set a goal. And reward your children's efforts. Of course, there's no greater reward for your child than learning the importance of financial planning. Your child will thank you later!