Smarter Living: Financial advisors say teaching kids early to save is important
by WNCN Staff
RALEIGH, N.C. -
Pay day is an exciting day for most people, but after paying bills and buying groceries, the thought of saving money seems unrealistic to some.
That's why teaching kids at a young age to save money is important, according to financial advisor Mike Hensley of Guardian Capital Advisors.
"I think these days it's important to introduce children to saving early because if they get to adulthood, which could be early 20's or early 30's, and they don't have any idea how to save, budget and spend, it could take them another 10 years to figure that out," said Hensley.
Hensley also says teaching kids to save places a monetary value on items.
"They're not as likely to just throw away and discard things because they understand the value," Hensley said.
Hensley suggests getting your children their own savings account so they understand how banks work. He also encourages parents to reward their children when they save money.
"For example, if during Christmas children were to receive cash as a Christmas present, I encourage them to put money in the bank and then the parent to match some of the funds," said Hensley.
By doing this, children begin to understand the growth of money.
Hensley suggest getting you child a debit card, although some banks have age restrictions. Having a piggy bank can also help kids with saving money.
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