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A good friend set the ground rules for his 16-year-old daughter when she got part-time work. She could spend 50% of what she earned but the remaining 50% had to be deposited into a savings account.
I'd like to ask about the strategies others have in play to help teach kids the value of money and the value of saving?
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Reminds me of the saying of The Oracle of Omaha - Warren Buffett. Worlds third richest person. "Do not save what is left after spending. Spend what is left after saving".
Haven't got into these strategies yet with my 7, 6 and 4 year old but we do count money and talk about how they can earn (not get) money in the future. I have instigated the old "for every dollar you raise collecting bottles I will match you a dollar". That seems to be working well.
I would love to hear some other strategies.
Hi Paul,
The strategy you recommended above is great and I think you can take that even further and take it back to when you are giving pocket money to your children and put the money away for when they want something that shows the value of saving. The big purchase will show them they don't need to ask for an item every time they want something, they just have to save for it themselves.
I put together an article on helping kids and how they pick up habits which will stay with them for life and this can be viewed on my profile at:
https://www.simplyaskit.com.au/profile/1283/ronald-pratap/blog/84/helping-your-kids-learn-about-money
Thanks,
Ronald Pratap
Principal Financial Adviser
RP Wealth Management
Level 2, 351 Oran Park Drive, Oran Park 2570
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E: ronald.pratap@rpwealthmanagement.com.au
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My children are 10 & 8 we have started using Spriggy cards for their weekly pocket money (based on their respective ages age)
It goes on their cards each week and they can see it growing via an app on their phone.
It is a VISA card with "Tap & Go" so they can also spend and see the balance drop when they make a transaction.
It's definitely helping them understand and manage "their" money and plan their savings for bigger items.