Nickels and Sense

Physician's Money Digest, May 2005, Volume 12, Issue 8

Where to begin:

There are some lessons in life you'renever too young to learn. A prime exampleof this is saving and spending.Children as young as age 5 can understandmoney, according to Parents.com.Home bank accounts.You can use recycled glass jelly jars orold-fashioned piggy banks, just makesure to have three separate bankaccounts—one for short-term goals, onefor long-term goals, and one for charity.Discuss with your child the types ofthings each home bank account can fundand create realistic goals that peak theirinterest. For example, if your 6-year-oldenjoys chewing gum, riding a bike, andfeeding his little sister, consider placing apack of Trident, a new bike, and moneyfor the local soup kitchen atop his list offiscal objectives. Then when there'senough money in their account to reachone of their goals, it's time to let the lessonreally sink in. Make sure they participatein putting their saving intoaction; you'll be doing them a world ofgood.