The best way to teach kids to save is to already have a savings or investment account established. When parents or grandparents dedicate funds for a child it establishes rules, purpose and special meaning. Joining the child’s additional savings on top of the established account creates a family joint venture for the child. Adding to the account and watching the account grow creates the opportunity to have meaningful dialog about financial matters that are foundational to future success. A recent University of Kansas study quantified that financial advantage of kids with accounts vs. kids without. Early savings strategies create a consciousness that impact future financial decisions for life.
My wife and I divided saving into 4 buckets…….now money 30% (do anything you want) delayed purchase 30% (had to wait 14 days before you could buy anything) long-term 30% (went into an investment account) and donate 10%.
Life spans are increasing 30% a decade. Children and young adults born today will live well pass 100 years of age. The new savings paradigm combines investing at birth with longevity to create wealth simply and elegantly.
We have created a life changing baby journal. Save a dollar a day at birth and create a child that will never need to worry about money.