To help your children adopt good financial habits, open them a Long term investment account. But also open them a Fun account.
Every time your children receive money, ask them to deposit half of it in their investment account and the other half in their fun account.
Subsequently, they can do whatever they want with their fun account money as long as it’s something fun for them.
On the other hand, they should not touch money in their long term investment account. It’s simply left there to grow. This money can later be used to realize bigger projects like going to college, buying a car or their first house.
Learn to Invest and Have Fun
With their investment account, teach your children how to save and invest. Buy them some stocks or mutual funds. They will love to receive statements. Receiving important mail like mom and dad will encourage their good saving habits.
This method can be implemented as soon as children can understand. That is, as young as 3 or 4 years old.
By combining the Fun and the Investment account, you will successfully educate your children to manage their money, demonstrating that it can be very fun. It also shows them how it’s nice to be in control of our finances.
They can use this method all their lives. This kind of financial habits will benefit them forever. It can teach them to dream and have goals but also to take the means to realize them.