Start your kids saving early.
Article by: Srividya Srinivasan
How many children are informed about financial planning at an early age? Parents don’t discuss their financial situations with their kids. And usually just shell money out of their wallets. By not teaching them the value of money, children don't realize the importance of every dollar.
According to Todd Mark, Spokesperson for Consumer Credit Counseling Service, "We know that the savings rate in our country is atrocious. As a matter of fact, last year was the first time since the Great Depression that we had a negative savings rate as a country. So, as adults that have obviously very little value on savings, we're not passing it on to our kids - to put much aside in savings - either." If parents were to advise their kids to encourage them about the value of saving money, it will help set them in the right direction initially. They don't have to force their kids to save money, just strongly encourage, which will ultimately go a long way.
Often when teenagers start earning their first paycheck, they become more money conscious. The simple cost for lunch makes them realize the amount of time they have to work just to earn the money. Psychologically, whenever kids earn their own money, they are more cautious when spending rather than when they are using their parents’ money. That is why allowances are often helpful in teaching kids financial concepts at an early age.