Madison area banks and savings and loan institutions can help your child begin saving money at an early age. A typical club might offer a special card or ID to the child, a free gift upon opening or establishing deposit levels, special events, stickers or stamps for each deposit, and more. Many local institutions also offer special college saving funds, tailored to meet the needs of today's students. Once your children understand and believe in saving money, they are on their way to a lifetime of responsible money management. With the firm establishment of savings goals, your child should be motivated to increase overall income.
Allowance is an important part of any child's development toward financial independence.
Most financial advisors suggest that children begin receiving an allowance when old enough to do chores around the house. Many experts do point out that chores like dusting, cleaning rooms, emptying the dishwasher, setting and clearing the table, and caring for pets should be expected behavior, a responsibility of living with and contributing to a happy, stable home life. In this scenario, the child doesn't earn allowance by performing chores, but receives it as his or her share of the family income. The emphasis here is on family stability-all family members have their own parts to play. As a source of more income, extra jobs outside of the expected chores should be offered to children.