Why I Keep My Daughter’s Birthday Money
First of all, I know what you are thinking. So before you get upset, hear me out. I can provide my children with everything they need and most of what they want, but one thing I can’t afford to do right now is contribute very much to a college fund. This is why I keep my kids’ birthday money.
Here's how I helped my 3-year-old save $1500:
Everyone knows that you should start teaching your children about money early, but have you ever tried to explain the concept of money to a three year old? The conversation usually starts when you are in the car on the way to daycare when your half asleep toddler says,
“Why do you have to go to work? I want to stay home with you.”
It’s heartbreaking. I get that question a lot from my older daughter and every time I explain to her that mommy and daddy go to work so they can earn money that pays for our house, food and all other things. More recently, while talking about work and money, she seemed to finally grasp what I had been telling her for the past year.
“So… you go to work so you can buy me toys and candy, right?”
Close enough for now, I thought.
When it comes to money that is given to my kids as gifts, I have decided to keep it simple and instill early the concept of saving.
My three year old knows when she gets some money it goes right into her piggy bank. Periodically, as the bank gets heavy, we go together to the bank to deposit her money. She gets to put the coins in the counting machine and give the slip to the bank teller. I always let her keep a few dollars to spend on whatever she would like. I tell my daughter that we are saving money to pay for her to go to college.
Not only do I want to teach her about saving money, but I want her to grow up with the expectation that she will go to college.
I know it doesn't seem like much, but if you are diligent about having your child save every coin and dollar, it can really add up. My daughter is about to turn four and she already has $1500 saved.
Teaching your kids about saving is one of the most important money lessons you can give them
Written by Amelia Hobbins
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