There is an opportunity to help your children form strong spending and saving habits at an early age, and doing so can have a concrete impact on their futures. For example, recent research suggests that children with savings -- even as little as $1 to $499 -- are four times more likely to go to college than children with no savings at all. There are many reasons why it’s beneficial for children to learn how to manage money from a young age, and getting started sooner rather than later can drastically shape your children's financial futures for the better.
Here are five ways you can encourage your children to develop good saving and spending habits.
Find a balanced allowance. One reliable rule of thumb for weekly allowance is to give your children $1 for each year of their age. For example, if your child is eight years old, you would give her or him an allowance of $8 a week. Of course, one size does not fit all, and you can adjust this allowance to fit your family rules and values.
Reward them for saving. Back-to-school shopping presents a great opportunity to teach your children how to differentiate wants from needs. Set a firm school shopping budget, and make a list with your children of what they need for school. Go over their list to see which items are r ...
