For today’s video, Christine Douglas from MoneyScholar.net shares four main principles kids need to learn in order to be responsible money managers.
Save: For the hot item of the moment (bike, game, doll)
Invest: For something 10 years or more (college, car, house)
Give: For those less fortunate than you
Spend: What’s left over and teaching them how to comparison shop, check catalogs, look for deals.
How to divide each category by age group:
3-5 year olds: Divide money equally 25% each
6-10 olds: Give 10%, Save 30%, Invest 30%, Spend 30%
Teens: Give 10%, Save 10%, Invest 10%, Spend 70%