Money Savvy Kids!
Hey Savvy Peeps!!! Thanks for reading my blog, today I want to talk specifically about raising Money Savvy Kids!
I believe that one of the biggest things to do is to leave generational wealth for our loved ones and what better way to do so then to teach them how to be the best stewards of their money.
Starting as early as 6 years old, we started teaching our daughter our family Money Rules. She has always been a quick learner and I thought why not see if she would take to this new game.
So I decided to implement the 10-70-10-10 Savvy Money Rule.
Rule #1 – Tithe/Donate – 10%
So in this house we tithe and so we are teaching our kids the same… so whenever they get money we are having them give 10% in their Give jar.
Rule #2 – Save – 70%
This is a huge portion because well they are kids and have no real expenses, let me start over, they have NO expenses! Lol! They’re only jobs are to be respectful, lovable and enjoy their childhood!! But seriously, in all honesty, my mother was a real MVP and raised 6 of us alone so saving wasn’t really something that happened in our house.
I didn’t have a secret bank account that was gifted to me when I turned 18 or anything crazy like that. – Not knocking anyone who did have this blessing, I just didn’t.
And so now, I have bank accounts for my children and they will be filled with 70% of any money they receive while living with me.
I want to be able to give them something to start off with when they leave my house. I am not one for spoiling or anything but I am for helping! And I think this will be of great help for them to start their life with a bank account that has some money in it.
Rule #3 – Invest – 10%
OK, so this is probably the newest money rule because truthfully, I just started to learn about investing. I always invested in my 401K, but I never self managed and invested in the stock market or anything. Early in 2017, I came across a group dedicated to women of color and investing. I fell in love and it was directly in line with my passion of building generational wealth for my family.
So I went all in – figuratively speaking, all in with regards to my learning, I did NOT invest all of our life savings or anything lol!
And since I joined that group, I became a main part of an Investment Club Committee and now I serve as Treasurer to my very 1st Investment Club.
Now, I am slowly introducing the idea to my Savvy Babies. They now can invest 10% of their money and I find a way to give them returns on their investment.
I recently opened custodial accounts for them and purchased their 1st real share of stock! So now I am even more excited to show them how this works!!!
Rule #4 – SPEND – 10%
Ok, this is the fun part, for them and let’s be honest – everyone! Almost everyone likes to buy things that they like! My kids are no different lol… my daughter is like me and she LOVES to read and eat… so she is always either asking to buy a new book or pretzels! Lol!
My son is still young, and he asks for the most random toys from basket hoops to buzz lightyear lol
So there you have it – our 4 Money Rules and how we break them down.
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