Quote from @Corey Conklin:
Quote from @Sharon Mittelman:
@Corey Conklin Not sure how old are your kids. when I started educating my kids they were young.
One of the things I did with them was open a special saving account (local Credit union) that gave them 6% on the 1st $500. that meant over $2 every month in interest.
When they asked for a new toy - I told them :"you have money in the bank, you can use it but if you do you will het less interest. So do you really want the toy or do you prefer more money from the bank", most of the time they said :"I'll take more money" :)
@Sharon Mittelman That is a great idea. Help your kids understand that money is a tool to enjoy life and the power of compounding interest!
My child is still young and expecting our 2nd soon. We aren't done having children so it's been a topic that my wife and I have been discussing a lot lately. We not only want our children to work hard and understand how money works, we want them to not attach themselves to material items. Your new toy example does a good job at teaching these principles.
@Corey Conklin It is time to start them on the 401K plan !
With just $1K /year from age of 1 to 65 at 12% They will have almost $12,000,000 tax free money.
If you wait till they are 18 , the same $1K/year at 12% is less than $2,000,000. You just lost your kid $10,000,000 .
Just something to think about.
