I wanted to dedicate this post to the all the parents that are my dear friends that have little ones. Also to all the others in the world who may read this that also have children or preparing to bring little ones in the world one day in the future. Not sure if my all my readers know this but I was a Senior Banker for the current years of 2012-2018. From 2019-current I am in still Finance working with business owners from all 50 states in the U.S. Working remotely from home is very different in the Finance world. We are so used to being visual, building relationships with clients and building portfolios to assist local communities from hosting seminars weekly & monthly and quarterly with surrounding junior achievements, local community schools, local community boards, local businesses and local events in the Greater Metropolitan St. Louis Area. But for now we can learn virtually until those in person activities resume one day soon! I have enclosed some fun facts to help your little ones save at an early age!
- START SAVING WITH JUST THREE JARS – each labeled “Saving,” “Spending” or “Sharing-Every time your child adds money to the savings jar, help them count up how much they have, talk with them about how much they needs to reach their goal, and when they will reach it. “All those behaviors are really fun for kids.
2. OPEN UP A BANK ACCOUNT– The Uniform Transfers to Minors Act (UTMA) allows a minor to receive gifts—such as money, patents, royalties, real estate, and fine art—without the aid of a guardian or trustee. A UTMA account allows the gift giver or an appointed custodian to manage the minor’s account until the latter is of age. It allows minors to receive gifts and avoid tax consequences until they become of legal age for the state, which is typically age 18 or 21. Children can deposit into them but they cannot withdraw without the other account owner/ guardian of minor. Good for savings purposes.
3. CREATE A TIMELINE– Like for example if the child gets a birthday gift in a form of cash, how to plan for the use of the next birthday gift + current birthday gift. Show them how to plan ahead and also manage their funds as they obtain them.
4. LEAD BY EXAMPLE– Make sure you making good spending habits in front of the children. Make sure you are creating saving jars in front of them so they know you are also on a budget, self allowance as you live your daily life. This shows the child they too can do the same thing responsibly as you.
5. START A CONVERSATION- I know this is the last thing you want to think about but start thinking about future expenses, college, 401 k, health benefits, taxes. See if the child knows the full definition of all topics and explain how each of them work in the daily life.
With all these good topics to follow by you can have them starting in no time! Until we meet again stay safe & social distance.
Much love. Xoxo