As parents, it is our responsibility to care for the needs of our children. We usually think of providing them with food, clothes, a warm, safe living place, and education. One thing that often gets overlooked is helping them learn how to handle their finances. A great way to get them started on the right foot would be to open savings accounts for children.
By opening this account, you will be helping your kids out in several different ways. The first and most obvious is that you will save money to help them pay for college or a first car. The earlier you start, the less you must put aside each month to reach your desired goal. It won’t add up quickly, but it will add up. Click HERE for a list of some financial institutions offering minors savings accounts.
Another huge advantage to encouraging smart financial habits from an early age is that when your children leave home, they will have the knowledge they need to make smart financial decisions.
It seems hard to believe, but the truth is that many kids start to get into financial trouble at college. Credit card companies will camp on college campuses and encourage students to sign up for credit cards. If the kids don’t have a sound financial education, and most don’t, they will get in over their heads very quickly. Their credit can be ruined before they’re even old enough to drink!
By teaching your kids how to balance their spending and saving habits from an early age, they can avoid the traps that have ruined the financial future of so many before them. If you want your children to get involved in their finances early, provide them with a budget tool such as the one I have developed, available HERE.
Teach your kids that it’s not just about hoarding or saving. You must also teach them they can have fun with their money as long as it’s done responsibly. Nothing feels better than taking that hard-earned paycheck and making a purchase. It’s also important that your kids learn how to make smart purchases. You can teach them how to be savvy shoppers.
You don’t want your kid to grow up being a tight-fisted miser any more than you want them to grow up to be a spendthrift. Balance is the name of the game in finances.
So, to make sure your child has a good education in reading, writing, ‘arithmetic…and finances, help them out when you open a savings account for your children while they are still young. They will have a lifetime of financial security to show for it.
For more information on accounts for minors, feel free to contact me directly if you are in the metro-Nashville area. If you are not in middle Tennessee, find a qualified fee-only Registered Financial Consultant (RFC) near you.
