I am adding a new section on this blog focusing on raising financially smart kids. Although the core of the blog is still focused on raising healthy eaters, about 2-3 posts a month will be on what we as parents can do to raise children who understand the basics of money. As with raising healthy children raising financially savvy children also starts at young age.
Given the current state of our economy, it is more important than ever to raise money-smart kids. With that in mind, we decided that 4 is a good age to start introducing my child Simone to the concept of savings.
Lesson #1 – Save a portion of your cash gifts.
From the money Simone’s grandparents sent for her birthday, she picked a toy she wanted, I bought a toy for her that she needed (a keyboard since she is taking music lessons), she spent a portion of her money to a charity of her own chosing (she went with the the Rachel Beckwith Chairty at MyCharity and the rest of the money went towards the initial deposit for bank account.
Net result of this exercise – WIN-WIN.
The grandparents are happy that their granddaughter put the gift money to good use.
The parents are thrilled that the child is learning to save a portion of the gift money. In our case she saved $50 bucks towards opening an account.
From the child’s perspective – she is learning to save a portion of the cash in her hands.