Teaching your child to save money

Teaching your child to save money

RICHMOND, Va. (WWBT) - As Rachel Depompa found out in this morning’s On Your Side Savings Guide, teaching your kids to save maybe their most important lesson ever.

The first step is to teach your child to pay themselves first.

Have your children set up a savings and checking account when you feel they are ready.

Cherry Dale, a financial coach with the Virginia Credit Union, says make savings automatic.

That means, make money for savings automatically comes out of whatever income they might be getting.

“Whether that’s an allowance, their first job or money from relatives, if they can pull 10%-20%, they can automatically put that aside into savings,” Dale said.

It’s such a great and instant lesson. Even if they put the extra money into a jar and not an actual account.

Dale says parents can also teach children the concept of interest through actual savings account with a bank, credit union or a money jar.

Savings is a learning habit and the earlier they start, the more ingrained it will be for them as they become an adult.

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