Starting the Saving Habit Young

credit: Megapixel Eyes
It’s never too soon to start teaching your children about money. While you probably can’t explain a bank loan or a home mortgage to a six-year-old, you can get them into the habit of saving money by helping them to create a saving habit.

Much more important than the amount of money here is that your child grows up understanding the discipline of saving money regularly. Start by opening a bank account for your young child and let them see the balance - you might want to start their saving off on the right foot with $20 or $50.

Once the bank account is in place, give your child a small amount of pocket money that must be saved in the bank. Even if this is only a dollar or two per week, it is important that your child can see the effects of regularly saving money. Take them to the bank once a month or so to deposit the money - most banks have special children’s accounts where this can be done, even with small amounts, without incurring transaction fees. After all, the bank wants to get your child’s business so that they grow up with that bank’s name as the one they’re most likely to use. As the balance grows, encourage your child to be excited by the result, and they might just develop a savings habit that will benefit them throughout their lives.

Tags: children | Kids and Family