“There are ways to empower the next generation, and that starts by teaching children the importance of saving from a young age. In school, we aren’t really taught about the importance of saving and many of us find that as adults, we have to fend for ourselves.”
A 2012 study by the American Institute of CPAs found that more than 60% of American parents doled out allowance money to their kids.
That’s the good news.
The bad news: The same study found that just 1% of kids save any of their allowance money. That doesn’t bode well for the next generation’s financial fitness.
As a parent, you can’t highhandedly boost the next generation’s collective financial IQ. But you can take some commonsense steps to raise your own brood’s game.
I asked more than a dozen personal finance experts for advice on what parents should do, and when, to prepare their kids to spend and save money wisely as they grow – and to ensure that they continue to practice good fiscal hygiene when they finally leave the nest.