To play in the school orchestra concert or participate in a baseball game, your child needs to practice. Saving, like practicing, is simply the act of preparing for a future need or desire. At age 9 or so, a child might be ready to handle a bank savings account. Choose a bank that welcomes small accounts and sets their fees accordingly. Track your children s progress toward their goals with a poster at home.
Older children can become excited by how the compounding of interest makes their money grow.
Take the number 72, divide it by the rate of return your money is earning to find the number of years it takes for your money to double. The teenage years Teens can be motivated by the offer of a small reward if they hit a certain saving goal in a certain amount of time. You might match all or a part of each dime or dollar a child saves. Or, raise a child s allowance for sticking to a budget for a specific time period. If your teens need help saving, provide guidelines.