Most kids grow up thinking that money is something that comes from Mommy and Daddy. But what you really need to know is how to save it.
- Step 1: Consider taking a part-time job to earn extra money when you are a little older. Then you can start thinking about other ways that you can make your earnings build upon themselves.
- FACT: An investment of $100 per month beginning at age 4 and ending at age 18, compounded at 8 percent monthly, that remains untouched until age 62, will yield over $1 million.
- Step 2: Start saving for something big you really want, like an expensive toy or a new bike. Ask your parents to help you calculate how much of your allowance to put away each week, and how long it will take you to save enough money to buy your item.
- Step 3: Ask your parents to take you to a bank to open a savings account when you have saved at least $10. Many community banks allow kids to open accounts with low minimum deposits.
- TIP: Ask your parents to explain the relationship between working and money.
- Step 4: Save part of your allowance in a piggy bank or an empty jar. You will be able to use the money you put aside to purchase something special.
- Step 5: Play board games, such as Monopoly and Life, with your family. They will help you learn valuable lessons about managing money.