What’s the most important money rule you can instill in your kids? SAVING! As a parent, you know it’s vital to teach your children the importance of personal finance and fiscal responsibility. Many kids get their first taste of earning power when they receive their first allowance. The importance of saving for something – like a new toy or a new video game – can be a lasting lesson your child carries throughout their life.
You have dreams and aspirations for your children and you’re probably thinking about what you can do today to help them better prepare for tomorrow. Often times, you may be so focused on your children’s financial future, you neglect your own.
To give your kids a bright financial future, take care of your financial future first.
It may sound selfish at first, but you must not put your kids’ financial future ahead of your own. Think about it this way: if you have not prepared yourself for retirement, but you are saving for your baby’s college, your adult children will have a lot more than student loans to worry about – they’ll be taking care of you!
Talk about saving and set a good example.
Set a good example for your children by talking about saving and giving them a small allowance. Encourage them to save their money for a future expense like a toy or even a trip to Disney! Talk with your children about how you are going to set aside money from every paycheck until you have enough to pay for the item. Show your children that money isn’t limitless, even if we do use that magical plastic card for everything.
When other priorities are covered, save for your kids.
There are so many resources out there for you to use when saving for your child’s future – whether it’s a trip to Disney or how to plan for the biggest expense a parent faces: College!
At Kelly Community Federal Credit Union we offer a Kidicate certificate that is offered at a market rate of 1.227%. The minimum required to open this certificate is $100. Whether for more immediate savings or future planning, a Kidicate is a great way to save and show your kids the power of compounding interest at work.
Please contact us to learn more. At Kelly Community, we are people helping people save more, learn more, and do more financially.