Zillions is produced by Consumer Reports magazine and is designed to help children ages 8 and older to make educated decisions about their purchases. As parents, you have a marvelous opportunity to teach your children something most Americans are having trouble with today. The savings rate among Americans has dropped significantly in the last decade and horrendously in the last quarter century. Remove the 25 percent before you ever hand over the money. I recommend putting the savings in the bank and most banks these days have some type of no cost account designed for this very purpose.
Interest is one of the greatest lessons children can learn.
It is the great incentive for saving. That s essentially what interest is. Interest is what the bank pays you for allowing them to loan out a portion of your money. When the statement comes each month you can show your child exactly what she has earned for doing absolutely nothing. The best part is the compound interest she earns.