Who wants to be a millionaire? Only kidding! I’m sure we could all use a little extra money. But imagine giving your daughter skills that she could use to not quiet be a millionaire but to be financially fit all her life including debt free! Got your attention yet?
Money is what some people say makes the world go round. I’d like to think of it as a much needed item for now. Since money is needed how about teaching your daughter to better manage it so that it goes further. Your daughter can learn as early as three years old how to manage money. These tips should only be used as a reference tool.
If you have a young daughter you can start by teaching her coin and dollar value. A money kit can be found at a teachers store and at your local toy store. The sooner she learns about money the better.
Next pay her! Pay your daughter for her effort not the chore. You want to encourage her to do her chores because it’s her responsibility to herself and her family. However, you can give her a small fee for effort – that would be an allowance. I’d say fifty cents a day. A little incentive goes along way. Encourage your daughter to do extra task like washing the car or straitening the garage which will earn extra money.
Now the tricky part - teaching her the importance of savings! Establish an account at a credit union for your daughter. Credit unions can open accounts for as low as five dollars. Guaranteed savings can only be done in small amounts. Have your daughter collect her weekly savings and make weekly deposits. Obtain a balance each week to see how close the goal is. Of course tally what fifty cents a day times 365 and you will have her goal. Put the goal on the wall or refrigerator alongside the balance to show tracking. Inform her that this account is for deposits only and to be reviewed at the end of the year. Remember stay at fifty cents a day any bigger and the goal may not be met. Weekly deposits will encourage your daughter to save responsibly and make a visual connection.
The same can be encouraged for the older daughter with the exception of the savings part. The credit union can still be established however, stocks can be introduced. Stocks can also be purchased for as little as five dollars. Encourage her to buy stocks and follow it on the local news and paper. The art of small savings is a guaranteed – which will encourage bigger savings as she gets older.
To further encourage your older daughter have her, her friends and family buy products from the stock name. This will encourage her to not only see how stocks and savings operate but allow her to invest into herself. Now picture this, your daughter depositing money weekly, buying stock and watching the paper for stock updates. Now look at her age while doing it. You the parent have introduced the concept of savings and earnings to your daughter. Major points scored for you.
One good way to encourage sound spending habits is to exhibit them. Make a list of household items needed. Take coupons and bottles along with the list to the grocery store. Have your daughter turn the bottles in and shop for couponed items along with other items on the list. Turning in all items with receipts and coupons should give you a big savings. Explain how much further the family was able to stretch the allotted money for food. She learns how to stretch her money as a child and one day as an adult.
Now let’s look at the bigger picture. She understands money, stocks, savings and earnings. Your daughter is investing in her own stock. She’s buying only what’s needed with her own money not credit. She’s done all of this as a growing girl. Image the possibilities as an adult – priceless! You have encouraged savings, money making choices and her chances of staying out of debt. Congratulations!
Money has a whole new meaning when you approach it the good old fashioned way. Don’t just give her money - have her earn it. After all she’ll be practicing earnings as an adult before you know it.
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