Money-Management Strategies for Kids and Teens
Kids are never too young to learn the value of a dollar. Help them hone the skills they’ll need for a lifetime of financial success with these hands-on tips.
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THE CONCEPT: Saving
It’s important to communicate to kids at any age that the money coming in most likely won’t cover 100% of your wants and needs all of the time. Saving a portion of your income today ensures you’ll have something reserved for when you need it.
PUTTING IT INTO PRACTICE
Step 1: Make sure each child has a savings account that’s earmarked specifically for their future.
Step 2: Recognize that it can be challenging for kids and teens to separate saving for the future (college, a car) from saving for something that might come up in the near-future (a new video game, the ice cream truck).
To get around this, some experts recommend a child have three piggy banks instead of one: Bank 1 for future saving (this money can go into the savings account you set up), Bank 2 for everyday spending, and Bank 3 for donating to charity (another habit to be encouraged from an early age).
Step 3: Motivate contributions to future savings by offering to match any money put into that account.
Published 05/04/2014
