Difficulty: Moderately Easy
Things You’ll Need:
- Savings account for your child.
Step1
Open a savings account for your child
Step2
When your child gets cash for her birthday or at Christmas, have them put it in the savings account. If they feel they must spend some, let them buy one thing with an amount that you set for them, but save most of it. They will probably get other gifts besides just the cash.
Step3
When they are old enough to start earning money from chores or other ventures, insist that they save a portion of this as well. Always let them keep part of it to spend though, so they feel the reward for their efforts.
Step4
By the time that they are old enough to drive they should have enough in the account to afford some sort of car. Then they will be really glad they didn't blow it all on things they probably couldn't even remember by now. They will always remember this car.
Authority 
Comments
LAURA7088 said
on 7/31/2008 Neat ideal because you'll turn around twice and it will be time!
rleeevans said
on 7/21/2008 This is one thing parents often forget...we did! We have a 3 month old - it's never too early to start! Thanks!
acole said
on 7/21/2008 I would probably start a college fund for my kids, but I will make them purchase their first car. I had to do that, and it made me learn money management quickly, it worked well!
thesquirrelymom said
on 7/20/2008 Both of my boys had accumulated close to 2,000 dollars each by the time it came to get a car. My youngest is still waiting but my oldest has had his for 3 years now and it still works fine.
Lindaperry said
on 7/20/2008 That's a good idea. Wish I had thought of that sooner. And those savings accounts are usually free to young people.