| As parents it is our responsibility to care for the needs of our children. We usually think of things like providing them with food, clothes, a warm safe place to live and an education. One thing that often gets overlooked though 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 be saving money that will help them pay for college, or a first car. The earlier you start the less you will have to put aside each month to reach your desired goal. It won't add up quickly, but it will add up.
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 of the matter is that many kids start to get in financial trouble at college. Credit card companies will camp out 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.
Make sure to teach your kids that it's not just about hoarding or saving. You have to also teach them that they can have fun with their money too, 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 eduction in reading, writing, 'rithmatic...and finances, help them out when you open a savings account for your children while they are still young. The will have a lifetime of financial security to show for it. |