Kids often assume that their parents and grandparents are made of money – and why wouldn't they? From school supplies to birthday presents and ice cream treats, the things they want and need are mostly paid for by adults. What they don't always see is that adults have to plan for the future, stay on budget and save money for retirement.
As a parent or grandparent, you have a golden opportunity to teach kids the importance of saving for things far into the future. Try these tips:
Talk about saving. Introduce the concept of earning [interest/dividends] at a young age. Even young school-age children can understand the basic math: If you put $1 into a savings account, you earn some extra pennies just for keeping it there.
Lead by example. Kids are used to hearing adults say "no" when they want something. Turn the tables and show them that adults don't get to buy everything they want either. For example: Perhaps there's a gadget you really want to buy, but you need to save for retirement instead. If it comes up in conversation, tell them about it and explain why you decided saving was more important.
Start a new tradition of gift giving. Presents can pile up at birthdays and holidays. Consider spending half as much on presents and put the remaining amounts toward the child's college education or savings account.
Start early. Kids have time on their side and an opportunity to build savings over a lifetime. You may be able to open an individual retirement account (IRA) for a child with earned income.
Start Small, Save Big
Open a Dyno-Mite Savings Accountat CHACO, and bring your child or grandchild into a branch to make deposits. It's a great learning experience that can build into a lifelong habit of saving money. And, an added bonus, when you open an account with a $25 deposit, your child or grandchild gets a really cool Dyno-Mite t-shirt!