Posted on July 19th, 2010
By Heather Englund Poling
As parents, we know the importance of teaching our future Suze Orman how to save and manage money. More than ever, it’s important to teach her that she’s in control of her wealth. Experts agree that as early as age 3, it’s important to get your future entrepreneur to start counting her pennies. What better way to motivate responsible money management than when she gets $5 in her Nemo birthday card?
Begin with getting her a piggy bank, or perhaps her own bank account. We found a few local banks offering savings programs geared toward teaching your toddler tycoon how to be a money mogul. The Kids’ SAIL Club cruised into our hearts as our favorite, with its great incentives and a unique focus on fun.
This is one to definitely switch banks for. Fairwinds put some thought behind its “Savings As I Learn” (aka SAIL) Club as to what will make savings and bank errands (yawn) actually interesting for kids. Your child’s account is set up just like a typical savings account, earning 1/4 percent interest and has no monthly service fee. As a special bonus to kids, they don’t pay a membership fee and only need $5 to open an account. Kids can deposit money in $10 increments by using their SAIL Coin Books. Your child will receive a SAIL treasure map record keeper. Each time she comes to any service center, she’ll receive a special sticker that gets her closer to the next treasure. There are two treasures on each map (savings of $250 and of $500). When your child reaches these deposit goals, she’ll get a free treasure gift from the teller. Additional club benefits include: birthday postcards, special events each season, Super Saver of the Month awards and a bonus for you - educational family seminars and programs. www.fairwinds.org
Now you’ve got her account. How do you encourage her to manage it? Like with cleaning her room or eating her peas, we all know that FUN is the great motivator. Dave Ramsey’s Financial Peace Jr.: “Cool Tools” for Training Tomorrow’s Millionaires! teaches kids how to set goals to save, spend and give money. www.daveramsey.com
SPENDING: The spending category is used for less expensive, immediately gratifying items - like the latest Zhu Zhu Pets accessory she just has to have.
SAVING: Savings would be for long-term goals like when she realizes that it’s going to take 10 weeks of work for those Justice jeans she is going to die without.
GIVING: Giving encourages your child to recognize the value of helping others in need. Parents can “match” their child’s gift to promote a sense of family giving.
