You may be surprised to find out how early on your kids can begin learning about saving and spending. Financial planner Ross Marino has a few tips on how to get them started early with good financial habits.
It's easier to be a responsible money manager as an adult if you were taught good financial habits at a young age. Whether you learned these skills early on or not, it's important to pass them on to your children.
Children as young as two or three can learn the basics of saving and spending. While it's great to have a piggy bank at home, it's even better to open an account for your child at a real bank. Help your child deposit his or her money, even if it's just a small amount.
When your child's statements arrive by mail or online each month, explain how much money has been deposited, and offer generous praise on both the child's the saving habit and on the interest earned, even if it's only a few pennies. You may want to contribute as well, either with a matching amount or by adding a certain percentage.
As your child gets older, you can start teaching him or her about budgeting. I will discuss how to do that, tomorrow.