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thewebspoke.com
| Teaching Your Kids about Money Management and Investing: a Financial Guide for Your Child |
Start Your Savings Program Now
Start a Systematic Savings Plan Now
Start a systematic savings schedule or automatic savings plan. This can be done through mutual funds,
money market funds, savings accounts, etc.
This is where most people fail miserably. You have no excuse. Your goal should be at least 10% of your
earnings. If you can’t do that then do whatever you can manage but do it systematically. Start with $1 per
month if you have to but get your plan started now. If you don’t have enough to start a savings or
investment account get a coffee can and put your first investment into it. After you get started you will find
ways of increasing your weekly or monthly savings.
How a Child Can Increase Their Systematic Savings
Most people say, "I can’t save money because I have nothing extra to save". Sorry, but this excuse is
unacceptable. There are two ways to increase your savings. You can either increase your income or you
can cut your expenses (reduce the amount of money you spend).
Increase your income
You might be a kid with zero income or you may already have an allowance or job. If you don't currently get
an allowance ask your parents what you can do to earn one. Do they need help around the house or
apartment? There are lots of jobs you can do.
Housework – cleaning the bathroom, vacuuming, dusting, doing dishes and making meals.
Yard work – mowing the lawn, washing the car, cleaning the garage and sweeping the sidewalk.
Odd jobs – baby sitting, helping to take care of brothers and sisters, making meals for the family, feeding
the pets and washing the dog.
Kids should ask their parents if there are some chores they can do to earn money.
Help your neighbors – do any neighbors need their lawn raked, mowed, sidewalk shoveled, car washed,
house work done, etc?
How about selling something on eBay? Children under the age of 18 will need to have their parent’s open
a PayPal & eBay account initially but with little supervision a child can use this online auction to earn a
decent income. Kids should ask their parents if they can start to gather some items around the house
which are no longer needed or perhaps some things they have outgrown. Try selling a few of the items
online and see how the process works. Just go to ebay.com and they will walk you through the process.
Note to parents: This may initially involve some time on your part but just think of the education your kids
will be getting.
If you are old enough it may be time to start looking for a job. Check out your local businesses, look in the
newspaper and start asking friends and relatives.
Here's another way to try to increase your income. Do what is expected of you without having to be asked.
Tell your parents you will make a weekly schedule of what they expect from you and suggest a modest
allowance for accomplishing these tasks all on your own and without your parents having to nag you. I will
go to bed at _____ without being told. I will brush my teeth prior to going to bed and every morning without
being told. I will keep my room clean and my clothes picked up without being asked. I will make my bed
every morning. I will read a chapter in my book every evening. I will do my home work, and the list goes on
and on.
You kids need to sell your parents on this. Let them know how important it is to let you help out and for
you to learn good work ethics. Tell them you want to earn and save some money so that they won’t have
to give you money for everything you want to do or buy. Most parents will appreciate their children's effort
and responsibility for doing this and will be happy to support you with an allowance if you can fulfill your
promises.
Spend Less by Cutting Your Expenses
Make a quick list of where you spent money this month and this year. Is there something you spent
money on which you really don’t need?
Do you buy soda, gum or candy at the store? Do you buy video games? Could you bring a lunch to school
and save some money?
If every day you go to school you buy a can of soda for $1.00 you could decide to skip the soda and drink
from the water fountain. In one week you would save $5.00 or $20 in a month. Is there something you can
give up spending money on to fund your savings plan?
Do your parents pay for your school lunches every day? You might offer to make your own lunch and bring
it to school. If your lunch cost $2.00 would your parents give you 50 cents of the $2.00 you will save them?
50 cents a day adds up to $2.50 per week or $10 per month.
If you sold a few items on eBay each month you could easily earn $10 - $100 per month. That would add
up to $120 - $1,200 per year.
Do you see how small amounts can add up very quickly?
Don’t forget your goal should be to save 10% of your earnings.
- How a Child Can Increase Their Savings
- Increasing Income
- Spending Less
- How to Invest Your Savings
- Where to Invest Your Savings
- Compounding - The Miracle of Growing Money
Start a Systematic Savings Plan Now
Start a systematic savings schedule or automatic savings plan. This can be done through mutual funds,
money market funds, savings accounts, etc.
This is where most people fail miserably. You have no excuse. Your goal should be at least 10% of your
earnings. If you can’t do that then do whatever you can manage but do it systematically. Start with $1 per
month if you have to but get your plan started now. If you don’t have enough to start a savings or
investment account get a coffee can and put your first investment into it. After you get started you will find
ways of increasing your weekly or monthly savings.
How a Child Can Increase Their Systematic Savings
Most people say, "I can’t save money because I have nothing extra to save". Sorry, but this excuse is
unacceptable. There are two ways to increase your savings. You can either increase your income or you
can cut your expenses (reduce the amount of money you spend).
Increase your income
You might be a kid with zero income or you may already have an allowance or job. If you don't currently get
an allowance ask your parents what you can do to earn one. Do they need help around the house or
apartment? There are lots of jobs you can do.
Housework – cleaning the bathroom, vacuuming, dusting, doing dishes and making meals.
Yard work – mowing the lawn, washing the car, cleaning the garage and sweeping the sidewalk.
Odd jobs – baby sitting, helping to take care of brothers and sisters, making meals for the family, feeding
the pets and washing the dog.
Kids should ask their parents if there are some chores they can do to earn money.
Help your neighbors – do any neighbors need their lawn raked, mowed, sidewalk shoveled, car washed,
house work done, etc?
How about selling something on eBay? Children under the age of 18 will need to have their parent’s open
a PayPal & eBay account initially but with little supervision a child can use this online auction to earn a
decent income. Kids should ask their parents if they can start to gather some items around the house
which are no longer needed or perhaps some things they have outgrown. Try selling a few of the items
online and see how the process works. Just go to ebay.com and they will walk you through the process.
Note to parents: This may initially involve some time on your part but just think of the education your kids
will be getting.
If you are old enough it may be time to start looking for a job. Check out your local businesses, look in the
newspaper and start asking friends and relatives.
Here's another way to try to increase your income. Do what is expected of you without having to be asked.
Tell your parents you will make a weekly schedule of what they expect from you and suggest a modest
allowance for accomplishing these tasks all on your own and without your parents having to nag you. I will
go to bed at _____ without being told. I will brush my teeth prior to going to bed and every morning without
being told. I will keep my room clean and my clothes picked up without being asked. I will make my bed
every morning. I will read a chapter in my book every evening. I will do my home work, and the list goes on
and on.
You kids need to sell your parents on this. Let them know how important it is to let you help out and for
you to learn good work ethics. Tell them you want to earn and save some money so that they won’t have
to give you money for everything you want to do or buy. Most parents will appreciate their children's effort
and responsibility for doing this and will be happy to support you with an allowance if you can fulfill your
promises.
Spend Less by Cutting Your Expenses
Make a quick list of where you spent money this month and this year. Is there something you spent
money on which you really don’t need?
Do you buy soda, gum or candy at the store? Do you buy video games? Could you bring a lunch to school
and save some money?
If every day you go to school you buy a can of soda for $1.00 you could decide to skip the soda and drink
from the water fountain. In one week you would save $5.00 or $20 in a month. Is there something you can
give up spending money on to fund your savings plan?
Do your parents pay for your school lunches every day? You might offer to make your own lunch and bring
it to school. If your lunch cost $2.00 would your parents give you 50 cents of the $2.00 you will save them?
50 cents a day adds up to $2.50 per week or $10 per month.
If you sold a few items on eBay each month you could easily earn $10 - $100 per month. That would add
up to $120 - $1,200 per year.
Do you see how small amounts can add up very quickly?
Don’t forget your goal should be to save 10% of your earnings.
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