Children and Savings

[PrincessFiona]

How do you encourage your kids to save? When Andrew worked, I forced him to put 50% away into his savings account. We're getting ready to get Amanda her combined checking/savings account because she's graduating in a few months. She's looking for a job right now. I told her she needs to save 50% of what she earns and her response was a "you're crazy". Am I?

How do you guys approach this with your own kids?

Kris

[GrayMatterWife]

With our oldest, DS (age 9), he receives $7 a week in allowance (essentially, earning a dollar a day). He must put $1 to tithe, $1 to savings, and the rest is "fun money." However, I match dollar-for-dollar whatever he puts into savings, so he always puts in more than $1 a week. He has a savings account at my bank.

[ladymoreta]

I think it sounds like a great idea. I didn't have a savings account until college. What do you have them use it for? Maybe having a concrete plan for it would help her be more willing to stash some away?

[peggyfromwastate]

My kids get their allowances in big wads of cash (to them, lol) usually once a month or so. When they are feeling rich, I immediately ask how much they are putting into savings. I don't allow them to shop in between our specified shopping trips (this is harder with the older kids bc they will buy candy at the school). So, they usually put at least half their allowance if not more into the bank. I do it all online so they see it go into their accounts right in front of them. They get competitive with each other about beefing up savings. So far ds9 has almost $900, dd12 and ds12 have over $1200, and dd5 who just started allowance at age 5 has over $100.

Dd18 is a bit different. At about age 14 her social life picked up and she didn't want to put money into savings. She preferred to blow it all. I withhold 1 allowance from her a month to help offset her cell phone. Her allowance isn't enough to support her social life, so she babysits a lot for me. I automatically take half the pay she'd get and put it to her savings. She's trying to get a job--- she's applied all over but has no experience-- I'm honestly not sure what I'll do about saving. Nothing most likely. She's going to see the taxes taken out, and that's gonna hurt. And then she's going to have to chip in to cover car insurance, at least half of it, and she's going to be responsible for gas money. Beyond that, I doubt she's going to have much to spend at all. But it will be a life lesson....

[peggyfromwastate]

I think it sounds like a great idea. I didn't have a savings account until college. What do you have them use it for? Maybe having a concrete plan for it would help her be more willing to stash some away?

My kids can't touch the savings accounts until they are in college. I tell them they will want that money someday. They don't need to save for anything big now. I used my little best egg to cover half of our honeymoon, for example. My savings account was just made up of birthday checks and Christmas checks my grandma sent-- my parents did not let me spend the money. I always resented that--- but I liked the savings account when I needed it!!

[ides]

O is only 5 and he gets $2 a week. He puts 50% in his savings piggy that we deposit in a savings account about once a year and 50% goes to a toy piggy for him to spend. We haven't discussed when he will have access to the savings or not.

[Sheherezade]

My kids are natural money hoarders, so so far, I haven't had this conversation with them. I would advise them to put at least 10% in savings, and more if they can. We will start doing budgeting with our son next year when he is "on his own" and has to manage his own expenses and a few bills. When I was in college, my dad set an automatic small deposit to my bank account as my monthly "paycheck" and I didn't have a meal plan. Learning to feed myself on the money I received - and pay the phone bill and pay for entertainment I wanted - was a good but gentle lesson on maintaining a budget. I lost a lot of weight, too.

[Pollyanna]

My kids are natural money hoarders, so so far, I haven't had this conversation with them. I would advise them to put at least 10% in savings, and more if they can. We will start doing budgeting with our son next year when he is "on his own" and has to manage his own expenses and a few bills. When I was in college, my dad set an automatic small deposit to my bank account as my monthly "paycheck" and I didn't have a meal plan. Learning to feed myself on the money I received - and pay the phone bill and pay for entertainment I wanted - was a good but gentle lesson on maintaining a budget. I lost a lot of weight, too.

This is what we do pretty much

[bokelley]

I always had an allowance growing up. Every Friday night my grandpa would sit down and we would "do the books". I had to 10% into the "tax jar". This was used for things around the house. New DVDs or special food Then I had to put 20% toward savings and he matched it. Then I got to keep the rest. Even when I was in college(and working full time) and living at home. I still had to do the books every Friday and pay the family tax. I am pretty sure at 10 I was complaining about taxes.

[Sheherezade]

I've never considered taxing the children. Brilliant. This could be a game changer!


Angie

[peggyfromwastate]

Yes---- I love that idea.

[Vanquisher]

My kids don't have a regular allowance. They receive money from me if they've earned it. Any birthday money they get goes into savings. That said, they are spoiled beyond belief and don't really need money.