A Simple Saving System For Kids & Teens
One secret to becoming wealthy is learning how to save. So it is important that we teach our children the importance of becoming a good saver. Implementing a Savings System now with your child or teen will save them years of sweating and struggling to make money.
Did you know that 95% or 95 out of 100 adults struggle with money and are in some sort of debt or financial scarcity? In fact, over half of the adult population in the US has less than $1000 worth of savings. Over half! And 1 in 4 adults don’t have a single penny saved.
This is because people are good spenders but bad savers. Spending money sounds exciting, whereas saving sounds boring. However, everyone who is rich has learned to be a good saver.
The secret to becoming wealthy is learning how to save.
How To Set Up A Savings System
Here we are going to introduce you to a very simple system that your child or teen can use straight away that will set them up with an amazing habit to set them on the path to riches.
The system involves dividing any money that your child or teen gets from now on into four separate categories and allocating a percentage of what they get into each category.
Like this:
It is a good idea to set this up for both cash and electronic money. The reason we are highlighting electronic money is because cash is becoming less popular for commercial transactions. With most purchases these days being made online, it is likely that your child or teen will receive most of their money from now by electronic means.
So for cash you would use four containers, and they can be any type of container. For electronic banking most banks allow you to create ‘sub’ accounts or ‘savings’ accounts attached to the main transactional account.
Any time your child or teen receives any money from anywhere, whether it’s from home, or their business, or their birthday or holiday money, encourage them to start this new habit.
If your child or teen get in the habit at the end of every month looking at what they made that month and splitting their money up in this way, they will never struggle for money for the rest of their lives.
An Example
So let’s take an example, say they get $10 for babysitting.
In this example, they would split the $10 as follows.
$1 into the GIVE jar.
$2 into the SAVE jar.
$2 into the INVEST jar.
And $5 into the SPEND jar.
Simple, right?
Summing Up
If you encourage your child or teen to do this, they will be in the 1% of people on the planet who are managing their money for future financial success. Hardly anyone does this, and therefore most people struggle with money. Less than 1% of adults have any system to manage their money. Over 50% of US adults have no savings. This is because they don’t have a system. If they create this system and get into the habit of any time, they get cash or money into their bank account, they will have no financial problems for the rest of their life.
Have you heard about FUNancial Freedom?
FUNancial Freedom is an online program that offers step-by-step, hand-holding strategies for your child or teen to understand how to make, grow and scale their money. There is no other program that is as detailed, fully animated and FUN.
They have a great FREE resource for you to get your child or teen started on their financial education journey.
CLICK HERE
to download your FREE copy.
ReThink Money by FUNancial Freedom is an ebook that guides your child or teen through learning how to become financially smart. It offers practical guidelines used by children and teens all over the world on how they earn, manage finances, invest smartly, and set themselves up for a highly impactful and fun life.
To learn more about FUNancial CLICK HERE