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May 23rd, 2013 |
How We Teach Our Daughter to Save
by Lisa Deters, Contest Winner
When our daughter was 10 years old, we went with her to our local Sandy Spring Bank office and opened a savings account with her. We then taught her how to save her money. When she receives monetary gifts for birthdays or holidays, she is encouraged to put 50% of it into her savings account. She had a part time job last summer, and she opted to have direct deposit, so all of her money was deposited directly into her savings account on payday. We will log on periodically to SandySpringBank.com and pull up her savings account, so she is able to watch her money grow, along with any interest that is added along the way.
Our daughter occasionally asks for special items, like any child does, and instead of us, her parents, just going out and buying these items, we encourage her to set a goal, and save her money. We give her the option to perform extra chores around the house that she is paid for, and then she is encouraged to save the money earned towards these items. She is also encouraged to apply herself in school, and is paid a certain amount for various grades that she receives on her report card, which encourages her to get better grades. She deposits at least half of the extra money she earns, sometimes more, depending on how much she earns, and if she has a goal in mind for something she may want.
By saving her money and setting a goal, she was able to purchase an iPod Touch using her own money almost two years ago. Our daughter seems to appreciate her things more when she uses her own money that she has earned and saved to buy these special items.
After having her savings account for over four years now, she puts money aside to deposit without being reminded. By encouraging her to save over the years, and her being able to see how her money grows in a savings account, she has gotten into the habit of saving. We also have savings accounts at Sandy Spring Bank, and save for various occasions, one being our yearly summer vacation. So we not only encourage our daughter to save her money, we lead by example, and we have savings accounts of our own that we deposit money into.
I think by teaching our children how to save, and how to budget their money, we are teaching them a lifelong lesson that cannot be started too soon – saving money will become a ritual for the rest of their lives.
Last month we celebrated National Financial Literacy Month by offering our readers a chance to share their stories with us. Each week, one winner was selected to receive a $100 VISA® Gift Card and have their story published on our blog. This is the third entry in this story series. The first two entries can be found here and here. Thanks to Lisa for sharing her story with us!
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