Personal Finance Advice

How is your child with money?  Do they spend all their money or are they able to save some of it?  Many of us had allowances when we were growing up or had a part time job after school or on weekends which helped us become aware and learn the importance of saving what we earn.

My oldest sister helped me open my first savings account when I was about 10 years old when my family felt I was old enough to have control of the money I had received from birthdays and various holidays.  I remember being excited about opening my first Certificate of Deposit, of course it didn’t hurt that I was getting 12% either not really knowing all that much about inflation at the time. 

As I grew older and got my first job I would usually spend about half of what I earned on video games or hanging out with friends and saved the rest.  By the time I went off to college I had quite a bit saved up and was able to live very comfortably while my friends were surviving on ramen noodles.

Every situation is unique and no matter what your financial status is don’t be afraid to discuss the issue of money with your child.  Many of you must be thinking I don’t want my child to have to worry about money at such an early age but even if you don’t discuss money with children, they will eventually see how you act with money, but will have less understanding in the long run. 

Once you have brought up the topic of money with kids, set a goal that they are able to reach. Perhaps providing an incentive if they save a set amount  of money over a certain time period.  Even if your children fall short of reaching this goal, try to provide encouragement.  Let them spend the money they saved if there was something in particular they were trying to save for.  This will give them a sense of accomplishment. 

Learning how to act wisely with money today can help shape their future spending habits as an adult.