National Teach Your Child to Save Day
April 24th, 2012 is National Teach Your Child to Save Day. Take some time today to teach your child the importance of setting money aside for their future. Don't know how to teach a child about saving? Here is a way to get started.
When I was growing up I got a weekly allowance. My parents sat me down, before I received my first money, and told me the importance of: Tithe, Capital and Savings. They told me it was unwise to spend all of my allowance.
10% to Tithe:God asks us to honor Him by giving 10% to tithe.
10% to Capital:This is money set aside each week that can be used for investment. The example I remember the most was using this money to purchase something to fix up, and then reselling it. This money's potential is only limited by your imagination some examples: Lemonade stand seed money, buying a bike so you can take on a newspaper route, and spending it on tuition to improve your skill set.
10% to Savings:This was the best category. For every dollar I put in savings, my parents would match. This was my 401K program growing up. About once a month we would deposit money into my bank account. By being able to watch my money grow it has always inspired me to save more money.
In summary if I got a dollar a week, I had 10 cents going to Tithe, Capital and Savings. Then I could use the other 70 cents how I saw fit; usually I would save up for a barbie. Hope this helps to get the conversation started with your children.
Photo by 401kcalculator.org