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| lmountford |
 Posted: Tue Feb 22, 2005 11:52 am Post subject: Ways of Encouraging Kids themselves To Save For College etc |
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Investing Sr. Associate
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Hi,
Has anyone got any good ideas for encouraging kids towards saving in the longer term. I never did saving as a child and I'm a terrible squander bug. I would like to teach my little one better habits. Can anyone suggest ways of making this maningful / fun for her? |
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| lmountford |
| Posted: Tue Feb 22, 2005 11:53 am Post subject: |
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Investing Sr. Associate
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Whoops ! That should read meaningful! Knew I should have invested in typing lessons  |
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| pride |
| Posted: Wed Feb 23, 2005 12:26 pm Post subject: |
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Investing Associate
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| If they save for college, make sure that it doesn't go into an account in their name. When applying for financial aid, the financial aid officers have a ratio of what the parents pay for college versus what the student should pay. What that means is if you have 10,000 in your name (parent) in a bank account, and your child has 10,000 in their name, the school would expect you as a parent to contribute 10% versus 90% of what's in the child's name. These percentages aren't exact, but the idea is there. Don't put cash in your child's name, because it will hurt his/her chances of obtaining financial aid, or will lessen the amount received. |
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| trixiezzz |
| Posted: Wed Feb 23, 2005 6:56 pm Post subject: |
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Investing Manager
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| I've always thought that 'matching' was a good incentive to help kids get the savings bug. When they want a big-ticket item, tell them that you will match dollar for dollar everything they save toward it. The notion of free money usually gets them exciting. Plus, it IS a real-world scenario similar to the 401k offer they may someday have at work. |
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| ammo |
| Posted: Thu Feb 24, 2005 9:26 am Post subject: |
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Investing Sr. Associate
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| Give them a reason to save up, I dunno buying a car anything something for them to look forward to get them really into it, then Just keep them into the routine of putting money into a bank account. |
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| fladoozle84 |
| Posted: Fri Feb 25, 2005 8:22 pm Post subject: |
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Investing Sr. Associate
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| My parents taught me the value of a "rainy day fund". I always saved my money because they always warned me that something better or more exciting will be out there. Last summer I bought myself a car and I have some more saved up for a possible trip to Europe. Who knew that when I was 7 something could be more exciting then that new Barbie? |
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| lmountford |
| Posted: Fri Feb 25, 2005 10:40 pm Post subject: |
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Investing Sr. Associate
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Thanks for the ideas I specially like the notion of matching. My daughter has a chart on the wall at the moment where she is colouring in every pound that she saves and she does seem keen to see it grow. However this is to be pocket money for her October Disney World trip and not as practical or long term as her college fund  |
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| mrsboz |
| Posted: Sat Feb 26, 2005 10:11 am Post subject: |
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Investing Sr. Associate
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| I think it is important to teach kids to save money but for college, I don't know. Everyone always says that if they have money in their name they are not eligible for any scholarships or anything for college. Tney are going to need a car before college that's what I am hoping to have them save for. I try to put all of the birthday money separate and teach them to keep money instead of spending it one something that they will not deem important after a couple of day.s |
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| ladyelle |
| Posted: Sat Feb 26, 2005 6:26 pm Post subject: |
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Investing Associate
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| An excellent book about how to save for college is called How to Save for College without going Broke. |
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| paula0000 |
| Posted: Sun Feb 27, 2005 3:54 am Post subject: |
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Investing Manager
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| Someone here mentioned "matching". That's what we have done since the kids were very little and got their own bank acct. Every dollar they put in the bank- we matched. It's a deterrant for them taking it out and spending it before college- because if they do- they have to give half the mmoney back. (We only match for what ends up being for college). |
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| poohlover |
| Posted: Tue Mar 01, 2005 4:26 am Post subject: |
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Investing Associate
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| I have my kids saving money now in savings accounts...1/2 of what my boys make umpiring little leauge games goes into this account. I stress that this is for car & insurance...not college. I agree with the other posters about not having too much in the child's name for college time. |
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| paula0000 |
| Posted: Tue Mar 01, 2005 12:07 pm Post subject: |
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Investing Manager
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| Also, when I went to college, my parents had expceted me to pay a good portion myself. Summers and weekends I had part time jobs. In the end- they paid a lot of it- but it kept me working toward a goal. |
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| trixiezzz |
| Posted: Sat Mar 05, 2005 8:00 am Post subject: |
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Investing Manager
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Here's something that might help your kids see the benefit of savings. Introduce them to the wonderful world of compound interest~ let them see how MUCH even a little bit of money tucked away will GROW to. Click on this link for a special calculator that figures compound interest over time:
http://www.finance.cch.com/sohoApplets/CompoundSavings.asp
Here's what it says: Compound interest calculator"Consistent investments over a number of years can be an effective strategy to accumulate wealth. Even small additions to your savings add up over time. This calculator demonstrates how to put this savings strategy to work for you!" |
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| ammo |
| Posted: Sat Mar 05, 2005 11:43 am Post subject: |
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Investing Sr. Associate
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| I should really make a savings account now thinkg about it, I really should need something to fall back on for college. |
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| pinwheel |
| Posted: Tue Sep 06, 2005 11:07 am Post subject: |
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| I think matching is a great idea. I also remember that my elementry school had a banking program that got kids exciting about having a savings account. I would think some of those values remain later in life. Even if you don't set up one in your child's name, you could create an unofficial book "Bank of Mom/Dad" where your child could monitor his/her savings and interest. Creates some work for you but could really build good savings skills for your child! |
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