Disclaimer: Good Day, Readers. WealthBuildingPowers blog is a financial literacy/competency blog and does not provide specific investment recommendations.
TEACHING YOUR KIDS TO BUILD MULTI-GENERATIONAL WEALTH
I am not proposing you become a social media influencer, BUT if you or, more likely, your kids have the talent, DO IT.
Today’s focus is opening a savings account and using Tik-Toc challenges to motivate your kids to master savings.
OPENING THEODORE’S FIRST SAVINGS ACCOUNT
Do you remember opening your first savings account? I collected the YUGEEE amount of money from my toy safe (which I loved, by the way) and jumped in the car with Mom. My older brother had his own savings account, and it was my turn!
We arrived at the bank, and Mom let me tell the teller I was there to open a savings account. The teller, female, as all were in this era, smiled and made me feel like a mini-Warren Buffett. Well, if I had known who Warren Buffett was, that is.
MY LESSONS FROM THAT FIRST SAVINGS ACCOUNT
- The importance of saving and budgeting.
- I saved a portion of cash gifts and excitedly watched my savings grow. When I was a kid, savings accounts paid high-interest rates (sometimes over 5%) to encourage people to save. Today, interest rates on savings accounts are typically less than 0.5%!
- Saving money regularly helped me develop good financial habits I continue to utilize today and pass on to my daughter.
- I embraced delayed gratification and the importance of the future.
- Watching that small account grow gave me a sense of pride.
OPENING JAZMINE’S SAVINGS ACCOUNT:
- Look for a bank that offers accounts for children and compare their fees, minimum balance requirements, and any other features that are important to you.
- Look at your bank, as it may have good deals for your child’s account. And you may wish to link your accounts.
- Go online and determine the needed documents: Proof of your identity, Proof of Jazmine’s identity, such as a birth certificate or passport, and Jazmine’s social security number.
- Fill out the application. While most banks have online systems, taking Jazmine to the local branch may be more fun.
- Most banks require a minimum deposit to open an account. Ask about any fees charged if the account falls below a certain balance.
- Most banks allow you to manage your child’s account online. You can usually set this up when you open the account.
- Review the terms and conditions: Make sure you understand any fees or restrictions that may apply to Jazmine’s account.
Once you have completed these steps, Jazmine will have her first savings account. She learns to manage her money by setting up a budget and saving.
TIKTOK CHALLENGES
Challenge Susan and Jonathan to find a fun saving game on TikTok. Play it together as a family. Just add one or more zeros to the adult challenge.
Consider joining in as a family on the game or challenge. If Jonathan is saving $5.00 each month, Dad, add one or more zeros to your goal.
Pick achievable targets and CELEBRATE the wins!
GENERATING SAVINGS!
- Allowance
- In place of an allowance, I paid Amanda $25 for each A and $20.00 per B. I am proud to say most of the time, I paid the maximum amount.
- Kids can earn money by taking out the trash, mowing the lawn, cleaning around the house, etc.
- Babysitting
- Pet sitting. My next-door neighbor, a teenager, pet-sits our cat. She typically earns $100 or more when we are out of town. She is saving money for college.
- Start their own small business, such as a lemonade stand or lawn mowing
- Doing odd jobs for neighbors or family friends: such as walking dogs or shoveling snow, cleaning a garage, etc.
- Selling items online: Kids can sell items they no longer want or need, such as toys or clothes, online through sites like eBay.
CREATE YOUR OWN FAMILY 401-K LITE PLAN!
Influence your kids to save by offering to match 50% or more of every dollar they save from their earnings, allowance, or gifts.
PARENT SUPERVISION
Provide supervision and guidance to protect your child’s identification {social security number, etc.} data, and hard-earned money. Many unethical people will try to breach accounts. Teach your kids the power of unique usernames (not something they post on social media) and unique passwords.
Please, start. If this feels hard, ask for help.
Recommended Financial Literacy Books for Kids and Teens
The paths to financial freedom are UNLIMITED. CHOOSE YOUR OWN!
LET’S MAKE SOME MONEY!
WHAT SUBJECTS DO YOU WANT TO READ NEXT? WHAT QUESTIONS CAN I ANSWER? UNTIL NEXT TIME!
YOUR GREATNESS IS NOT WHAT YOU HAVE; IT’S WHAT YOU GIVE! – SOME CHARITIES I SUPPORT
St Jude Hospital: https://www.stjude.org/
Wounded Warrior Project: https://www.woundedwarriorproject.org
Folds of Honor: https://foldsofhonor.org
Wilson’s No-Kill Animal Shelter: https://wcnkas.org
TRUST ME – YOU WILL LIKE THE BELOW BLOGS!
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USING CRITICAL THINKING IN PURSUIT OF POST-HIGH SCHOOL EDUCATION – CRITICAL THINKING SERIES – PART 2
CRITICAL THINKING – TOP TEN IN-DEMAND SKILLS FOR MANY EMPLOYERS! – CRITICAL THINKING PART 3: WHAT ARE THE UNIVERSAL STANDARDS OF THINKING?
CRITICAL THINKING SERIES PART 4: – A SELF ASSESSMENT OF YOUR LEVEL OF THINKING AND LEARNING
THINKING IS DRIVEN BY QUESTIONS, NOT ANSWERS – PART 5 CRITICAL THINKING SERIES: WHAT QUESTIONS DO THE BEST CRITICAL THINKERS ASK?
WHAT {DO YOU, AS A} CRITICAL THINKER, DO TO LEARN? – PART 6A – CRITICAL THINKING SERIES
WHAT DO YOU AS A CRITICAL THINKER DO TO LEARN – PART 6B – CRITICAL THINKING SERIES
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Bill Gates Says This Is the Most Important Thing He’s Learned from Warren Buffett. (Hint: It Has Nothing to Do with Money) Two billionaires are linked by one common denominator.
WARREN BUFFETT’S NET WORTH IS DRIVEN BY THESE IRONCLAD TEN RULES
Warren Buffett Says This 1 Simple Habit Separates Successful People From Everyone Else http://flip.it/_AzPx9
WARREN BUFFETT UTILIZED COMPOUND INTEREST TO BECOME THE 3RD RICHEST MAN ON THE PLANET!
WARREN BUFFETT UTILIZED COMPOUND INTEREST TO BECOME THE 3RD RICHEST MAN ON THE PLANET!
COMPOUND INTEREST IS THE EASIEST WAY TO DOUBLE OR TRIPLE YOUR MONEY
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INVESTING IN STOCKS IS COLOR BLIND – WHAT IS STOPPING YOU?
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FINANCIAL LITERACY IS JUST NOT THAT COMPLICATED – TRUST ME!
https://wealthbuildingpowers.com/2019/04/01/financial-literacy-is-just-not-that-complicated-trust-me/
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ABOUT ME
I am a proud nerd (as my beautiful wife and daughter have told me) investment and finance blogger with an NC. State, Chemical Engineering, University Rutgers, MBA and Harvard University, Advanced Management education.
I left a corporate career because I desired to make a difference as a speaker and writer. I was blessed to be coached and mentored by strong women and men in my family and professional life. It is my time to serve and give back.
DISCLAIMER
I started my first business at ~13 years of age (a small but brilliantly created plant nursery). I am a successful investor in stocks, options, and real estate and am happy to share my finance and investment lessons. I am NOT a licensed financial advisor. Please do not construe my suggestions on this blog as recommendations for your situation. As an investor, you must establish your risk/loss tolerance. Investment in any asset involves risk, including complete loss.
Please seek your licensed CPA or fiduciary financial advisors for individual financial advice.
I write this weekly blog to make an impact by reaching an audience and demonstrating the need for financial literacy. I will help you get there.