Teaching Kids to Save

April is Financial Literacy month, and in this episode of Financial Clarity for Doctors, hosts Corey Janoff and Rachelle Vanderzanden talk about some basics of teaching kids to save and manage money responsibly. Getting kids to the point where they are financially independent is a huge milestone, and sometimes it feels like that is harder to achieve than it has ever been.

Strategies and ideas for raising financially literate children:

• Model good financial habits and discuss them with your children. This includes:

• Tradeoffs – you can buy this, but then won’t have enough money for that.

• Delayed gratification – saving for the “big” items.

• Retirement – we set aside some of our money, so someday we can quit working.

• College – we set aside money for you, so that someday you can go to college, learn schools, and get a good job to be able live on your own.

• Taxes – some portion of the money we make goes to the government to pay for schools, roads, and other things.

• Start early with the basics and as your children grow, you can incorporate things like savings accounts, investment accounts, and even involving your kids in decision-making with family spending (vacations are a great example!).

There is no perfect way to teach every single kid, but knowledge is key here! You don’t necessarily need to discuss specific numbers like salaries, but involving kids in the household finances at a very basic level is a great way for them to learn.

For more financial planning tips from Corey and Rachelle, find them on social media! LinkedIn: @CoreyJanoff and @RachelleVanderzanden; Instagram: @CoreyJanoff and @VanderzandenRachelle; and Twitter: @CoreyJanoffCFP and @RachelleFinance 

Discussions in this show should not be construed as specific recommendations or investment advice. Always consult with your investment professional before making important investment decisions. Securities offered through Registered Representatives of Cambridge Investment Research, Inc., a broker-dealer, member FINRA/SIPC. Advisory services offered through Cambridge Investment Research Advisors, Inc., a Registered Investment Adviser. Finity Group, LLC and Cambridge are not affiliated. Cambridge does not offer tax or legal advice.