Wednesday, February 15, 2012

Teaching kids about money

Growing up my parents always saved money for me and my brother, but they never taught us how to do it.  As a result I had to learn the hard way - My parents did what they felt was best and I certainly don't put any blame on them.  What I have gone through really isn't that bad. I just wish that I would have learned to save early in life.  My kids are young and I want to start drilling it into their heads that they are responsible for their future.  Considering they are still so young (5, 7, 10) We feel that it is appropriate that they save 50% of their money for savings, 25% for RESP (registered education savings plan) and then the remaining 25% they can spend their way.  This way they learn to save for their future while learning how to save for something they want. I hope this will teach them to save for what they want as an adult as opposed to using credit.  I've told them that if they never touch their savings until retirement and continue this habit into adulthood (saving 10% of their income each pay) they will have 100's of thousands of $$$$.  Also, if they ever run into problems in their adult life they will have the funds to help themselves out.  This is the set up below that we came up with.  Right now, they are super excited to get started......

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