Get kids saving 10 per cent

Last updated 12:30 24/03/2014

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The best way to get kids saving

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I have never forgotten what a friend told me about how he learnt good saving habits.

He became a very successful lawyer and became a well known judge in the New Zealand.

He told me that his parents made him put aside ten per cent of everything he ever earned into an untouchable account.

Forty or 50 years ago we all had school savings accounts where it was not unusual to be only banking pennies or a few shillings a week. It probably does seem odd to be banking $1 if you only get $10 in one week by today's standards,(or even less) but really it should not be rejected because it seems like such a small amount.

If it is difficult to be depositing $1 per week into a bank account either electronically or manually visiting the bank, then create a habit of putting the 10 per cent amount into a container which will be regularly be opened and deposited into the account.

Once it starts gaining interest, more interest by the child will develop.

It is just amazing how much $1 per week can grow in 10 to 20 years with accumulating interest.

Remember also, that the "$1" will increase to $10 or even $50 per week by the time the child is working after school or even on apprentice wages.

After that, when the person is getting a full wage the habit will be embedded and they will never miss the 10 per cent which is put away.

I wish I had known to do this with my own children. I never thought of it.

I hope my grandchildren can adopt this habit.

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