Step Encourage Savings and Financial Planning

Studies find that a large percentage of kids today are wasteful when it comes to money: most want to spend rather than save. We need to help kids fight their spending urges and teach them money management skills when they are young. Here are eight ways:

• For a young child, buy a piggy bank to save coins. Make a rule that it must be filled before the money is spent.

• Give a weekly or monthly allowance (depending on age) so that she can learn to budget money.

• Make her write down her intended purchase and post it for a few days before she buys it. A younger kid can draw it on her "wish list."

• Older kids should be required to spend their own money on entertainment and nonessential items. Don't give out loans.

• Help a younger child open up a savings account and an older child a checking account so that they can monitor their money and spending.

• Require that a portion of her allowance go to a charity of her choice.

• Require a set portion of her allowance always to be saved.

• Say no to frivolous, rash buying and don't give in.

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