Teaching Your Kids About Saving Money - WBAY

Teaching Your Kids About Saving Money

Billionaire Warren Buffett has been a vocal proponent of teaching kids about finances at a young age.

In today's Become an Action 2 News This Morning report, we have some tips on how you can teach your kids about money.
  • Parents.com says says it's a good idea to give kids an allowance. Weekly works best, because that way kids won't forget about it. When kids have an allowance, money starts becoming more real to them and they can start to learn about saving.
  • Consider buying two, or even three piggy banks --one marked save, one marked spend, and maybe one marked donate. That way kids will keep track of where their money goes.
  • Have your kids help you clip coupons.  Then they can help you look for those items in the store. That shows them that with a little bit of work, you can save money on things you're buying anyway.
  • Forbes magazine says for 3-to-5-year-olds, have them save up for a toy they really want. That way they can see that it's important to work toward a goal when it comes to money.  But make sure it's not so expensive that it takes too long, and they get frustrated waiting.
  • For kids 6-to-10, Forbes says a good thing to do is to have them help you make choices at the grocery store. Give your child a couple of dollars and have him or her decide which fruit or cereal you're going to buy. That way they can learn about comparison shopping and see how far money goes.
  • For teens, have them learn about compound interest by going on a website like investor.gov.  That way they can see how when they save money, it can actually make more money for them. Plug in some numbers and find out how much they'd earn.
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