Getting Kids to Start Saving Money

For all you parents out there which now includes myself, how have you taught your kids about savings and money?  This Kiplinger article breaks down the years into specific periods and what you and your child can specifically work on to get them engaged and for parents to stay on point as well.


From the article here 

• Start with a piggy bank. Banks come in all forms, from traditional pigs to talking ATMs, and they're great as both teaching tools and toys. For piggy banks with a twist, take a look at www.msgen.com and www.prosperity4kids.com. For a fun lesson in saving, see the books and other materials at www.itsahabit.com.

 

• Tweens know what money can buy and are able to plan further into the future. So they're prime candidates for getting an allowance that's tied to specific responsibilities. Requiring them to pay for certain purchases- collectibles, entertainment, trips to the mall -- gives them an automatic incentive to save.
• Open a bank account, if they don't already have one. But be careful to explain how the system works. Even at this age, banks can be a mystery to children, who are often horrified to see their money disappear. (In the DoughMain study, 51% of parents said they give their children an allowance, but only 4% require them to deposit money into a bank account.)
• Start an IRA. If your children have earned income from a job, in 2012 they can contribute an amount equal to their annual earnings or $5,000, whichever is less. You can seed the account, as long as you don't exceed their actual earnings.