Bank on it: Get your kids involved
Published 8:00 pm, Tuesday, April 7, 2009
Does your child have a savings account yet?
If not, National Teach Your Child to Save Day, slated for April 21, is a great chance to get started.
Parents need to be part of educating children about the importance of managing money.
BauerFinancial Inc. offers a couple of tips on how to do this:
• Bring your child to a bank to see how things work.
• By opening a savings account for your child, he or she will learn how the compounding of interest adds up.
• If you are able to match funds, whether partially or dollar for dollar, it will help make your child's goals more attainable while still giving them a sense of accomplishment.
• Teach your child how to budget an allowance. The American Bankers Association suggests teaching your child to put some money away for the long-term.
It says: "Keep long-term savings in an investment fund; short-term savings in a bank; and spending money in a jar, piggy bank or wallet. You can also encourage children to save part of their spending money for charity."
Some of these simple acts today will help produce more responsible consumers tomorrow.