·        Take your child to a financial institution to open a savings account. Encourage a regular savings plan and visit with them to make deposits and withdrawals. Help them to save a portion of money they receive from their allowance, birthday, or other gifts (10% is a good goal).

 

·        Open a FREE checking account and help your child record their transactions in a check register and balance their checkbook monthly using their statement. When you believe he/she is ready to have greater access to his/her money, apply for a debit card…it’s easier than writing checks. The money comes directly out of the checking account.

 

·        Discuss expenses with your child by identifying them as “Needs vs. Wants”. Does she really need to get her nails done twice a month? Maybe she could get a less expensive manicure and save $25 to $40 per month instead. Does he need to purchase the newest DVD or CD as soon as it comes out? Maybe he could wait until it goes on sale or rent it from the video store, possibly saving $5 to $20 per month. Those small adjustments can add up quickly and make it possible to accumulate extra savings for their future.

 

·        Assist your child with setting both short and long term goals. Beginning to save for Prom expenses in August is a good idea and would be an example of a short-term goal. Saving for college or a car would be considered a long-term goal and may take longer than a full school year to accomplish.

 

Your goal should be to teach your child how to handle their finances responsibly, so that when they receive and earn money of their own they have a plan for it and a place for it to go.