Wednesday, July 25, 2012

Teaching Your Kids How To Save Money

When our daughter was little we always paid her for doing chores around the house.We started a household chores and rewards system when she was 5 years old and it worked really well for us over the years. (she is now an adult).

One rule that we always had in our home when she was growing up was that any money she ever received from chores, Birthday gifts, Holiday gifts, etc. She always had to deposit 1/2 of the money into her savings account and she could spend the other 1/2 any way that she wanted.

When she got her first job at age 15 years of age, that rule still applied. She had to deposit 1/2 of her paycheck and the other 1/2 she could spend on whatever she wanted. Again, this worked really well for us because we started it at such a young age.

If our daughter wanted an expensive item...she had to save up for it from the portion of money that she was allowed to keep each week. She wasn't allowed to dip into her savings account at all! That account was only for college expenses and if she wasn't going to attend college, she could use it for a car once she graduated high school. (she did graduate and she did go onto college).

I know this system of things won't work for everyone but my piece of advice to all parents is to start your kids early! The earlier you teach them to save money, the better!

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