[USER]

Any suggestions on how to help teach your young child about the value of money/saving? So far I just explained about how it’s good to balance spending and saving when you have money but I’d like to give him a better grasp..

Ex. MIL did an Easter Egg hunt with my kids and my 7-year-old made it out with $50.

I am fairy frugal and do my best to not fall into the consumer over-spender and trying to teach my children not to focus on needing the nicest and newest things.

He’s just a kid and I’m sure he wants to pick out some Legos or save for when a toy catches his eye, so I’m not discouraging that but $50 seems like a lot for kid.

I planted the seed in suggesting he save $20 or $25 for his future education (529 fund) and explained how some jobs require expensive schooling. Later in the day he told me he wants to save half for his college fund.

It made me wonder how to structure/show him his savings throughout the years if we keep up him saving part of his money (he get’s some from bdays and he works in the garage with my husband and he pays him a few dollars per hour).

I already have a 529 set up for him but I don’t think I want him to know that yet, I’d rather give him ownership of some savings goals so he can see how he can make a difference in his future, and such. But how?

We also talk about gifting money. not too long ago a high school kid was fundraising and without being asked by me he ran to his room and came back with a few dollars for her.

[Jeff]

My kids are in high school. For years I’d match whatever they put into their brokerage account. Recently I shared with them all of my/my wife’s financials to show that over time it can add up.

Seems to be working as they both now proactively put money away.

My older daughter just got a job and puts 30% of her net into investments…

I’ve tried to be as financially transparent as I can with them, and slowly take them on the journey.

[Seltzer]

Someone I worked with in the past told me he gave his kids a $500/month allowance (pick any number) then would have them sit at the dining room table with him and go through their monthly bills (paying the parents back) — rent, electric, phone, etc.

so, they would learn the concepts of budgeting, paying bills in their future/get in good habits, but also brought some awareness of how hard their parents work to give them the life and comfort they have.

Another component was the actual allowance the kids got to keep (I think it was $20 or $30) that they then needed to decide how much they’d save, spend, and give to charity.

The amounts could vary each month but each child had to decide. The kids also had to decide what to do with birthday money or money they’d earned since the last money meeting.

I always thought this was a bit genius.

A chance each month to talk to kids about money, the responsibility it takes to manage money successfully, and how to ensure they have a solid foundation from saving to donating into their adult lives.

I think they said they started when the kids were about 7 years old and then got progressively more detailed and added in investing concepts as they went too.

Good luck!

[Seltzer]

I’d just set up a custodial brokerage account and you can see the money grow. Id let him buy slices of stock or ETFs.

[Author]

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