Teach Your Children to Save can be one of the most important things to do in life. We are responsible for teaching our children of so many things to prepare them for all of the challenges that we have in life. One that many people ignore is how to manage money and how to save money. This is why we wrote this post to try and contribute some information that we feel will be useful to many people, adults as well as children. If you have enough money to get by and do the things you want to do, you can enjoy life much more than if you are destitute.
We do not receive any financial training what so ever in school and most do not receive any from their parents either. Teaching your children to save some money for something that they would like to purchase is probably one of the most important things that you can teach them when it comes to money management as they grow older.
Save 10% from everything you earn and invest it for the future. We like to suggest that you save the 10% for retirement. If you begin early in life, you will have much more than you can imagine for your retirement. It will also provide the flexibility for you to retire early if you need to or want to and enjoy life. Save now and take advantage of the ability to compound your interest and savings.
In addition to the 10%, you may also want to save money for other things that you would like to have in your life. Whether it is a trip, a car or a house or something else in your life, saving and paying cash will leave more money in your wallet compared to paying interest on debt that you build up.
Teaching your kids to save and being a banker for your kids is another lesson to teach your kids. Keep records and make it important to you and to your children. They will appreciate learning about banking later in life.
When you save money and earn interest on what you save and then reinvest that interest and then earn interest income on the interest you reinvested, this is called compounding. It is amazing how fast the interest can accumulate and the value of your money can grow over the years.