What to do about a savings account for your children?
When your kids have made some money of one of the business ventures
they have come up with, (our mini-course on 50 Easy Ways for Kids to
Make Money is a great resource for business ventures) the first thing
they need to figure out is how much they
Once they have figured out how much they made (after taking
into account any expenses) have them take a small portion of it, say
and let them spend it right away.
After all, they have done an awesome
job and if they can't spend any of it, they may question why they
are doing all this work for
anyways? This Instant gratification is very important, even though this
article is about savings stategies.
After they had their fun spending their hard earned money, it will be
easier for them to actually put some money away for later.
remember saving ALL my money I earned and it wasn't a lot of fun, it
not really inspire me to do something else to earn some more money
away. I did have my big end goal in mind but that would take a long
time and for children a couple of weeks may seem like months or years.
Now, I advise to not have your kids put the rest of their earnings in
acount. Have them put it in 5 different piggy banks or one bank account
and four piggy banks.
In my book "Why EVERY Child Should Have 3-5 Piggy Banks" I have explained
this in detail. In short, the 5 recommended piggy banks are:
Money Making Money
Just for Me
The money is divided in equal parts, so each piggy bank receives 20%.
the scenario decribed before, the "Just for Me" piggy bank will receive
a bit less, since we have had our kids already spend some of
earned money as the instant gratification.
Make it mean something for them!
Cheers.....Amanda van der Gulik.....Excited