Children are never too young to start learning ways to save and invest wisely. In fact, there are many ways for kids to save that will make them feel empowered and pave the way for prosperity once their reach adulthood. One of the most popular methods has always been to give children an allowance. Parents should encourage their kids to save part of it as soon as they get it, and embed in them the importance of putting money away for a larger goal. Setting an example also helps, as children tend to imitate parent's ways with money.
If this isn't working, there are some tricks that can be used as ways for kids to save. For example, some parents open a savings account for their kids, and encourage them to put money away every month. Every time kids make a deposit, parents can match the amount. That way, a kid who's saving $10 US Dollars (USD) is actually getting $20 USD in his or her account. This alone is often enough incentive for kids to step up their savings.
Other ways for kids to save money focus on parents helping them make cash, so they can learn the importance of hard-earned money. This can be done by "paying" them for doing chores around the house rather than providing an allowance. Parents can also encourage kids to take on additional chores during the summer, and older children may be encouraged to get a part-time job.
One of the most overlooked ways to save is through investing. Children over 12 are pretty savvy, and they can be taught about brokers, investments, and long-term returns. Equity mutual funds are a great option, as they are easier to understand, and give kids a chance to get involved in the process.
There are many ways for kids to save, and ultimately, whatever works for a child is the right one. The important thing is to get started early and encourage kids to save on a regular basis so they can learn the value of saving and investing.
