The Forced Savings Account

kid-moneyMost parents want to teach their children the importance of saving money.  While teaching children to save is VERY important, the approach many parents take is out of balance.

Some adults get excited when their child receives a cash gift and has the great idea to open that special savings account at the bank. Granted, it is not as accessible as a piggy bank, but there are other issues we want to address.

First, it is important that kids gain an understanding of handling money – literally.  If it is all tucked away in the bank there is no teaching that can take place at their age.

Secondly, what generally tends to happen is that the parents force their kids to put MOST of their money into their savings account and then they have very little for anything else.  At some point the child gets access to this money and ends up buying a game system, bicycle, iPod or computer and blows ALL the money in their savings account.

Some kids seem to be natural savers and others seem to be natural spenders but neither disposition leads to long-term healthy financial management.  The most important thing you can teach your child is to have a balanced approach to financial management.  How?  Use a program like CA$H KIDZ.

Fun Fact:

Parker Brothers printed more money for its Monopoly games than the US Federal Reserve has issued in real money for the United States. If you stacked up all the Monopoly sets made, the pile would be more than 1,100 miles high.

No comments yet.

Leave a Reply

Contact Us