Set savings goals with your child.
Almost all of us will push ourselves more if we set goals. That is definitely true of savings. No matter what age we are, it is easier to save for something specific than to simply save for “a rainy day.” Help your child start thinking about savings goals early. You might want to encourage savings by offering to match your child’s contributions toward a goal to reward positive savings behaviors. Here’s a simple plan:
- Identify the item your child wants to save for: bicycle
- Determine the cost: $150
- Set a savings goal for your child: $75
- Set a matching goal for you: $75
- Determine how much your child can save each month from allowance, gifts, etc. $25
- How many months will it take to buy the bicycle? $75 / $25 per month = 3 months.
If your child is under 12, consider an Adventures in Savings account from Cornerstone. Every account comes with a savings Passport in which your child can set a goal and track progress.
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