I recently appeared on HLN’s The Daily Share cable TV show to talk about new research showing almost half of Black American families have NO emergency savings fund. It’s also a disappointing trend for American families, in general, who tend to live paycheck to paycheck. The Neighborhood Works America survey new study reported by Black Enterprise Magazine got a lot of feedback online. According to Black Enterprise, “African American households made up 47% of those without savings, as compared to 19% of Caucasian households. Hispanic families without savings was also disproportionately less (41%) than white families.”
Early in our marriage, it was hard for us to keep a rainy day fund since we lived solely on my husband’s income while I stayed home with A.J. Once I started freelancing, blogging and wrote my e-book for work at home moms in 2011, things got easier as my income grew. Watch the video below for my insight on teaching children to save money, as well money lessons from Frederick Goodall of MochaDad.com. After the video, I’ll share step-by-step how we’re teaching five-year-old A.J. to think long-term about money.
Teaching Children to Save Money
At five years old, A.J. is proud of his new savings account at Wells Fargo Bank funded by gifts from family and friends. He also has a long-term goal of saving for his first car when he turns 16. So far, the 2015 Mitsubishi Mirage we reviewed tops his list because of its color and size!
He also earns a $1 a week allowance for his chores of emptying waste baskets in our home once a week that I shared in 5 Easy Money Lessons for Children. Another lesson we teach is that you’re only paid for work when you follow the rules. He has lost his allowance at least twice because he didn’t perform his job neatly or in a timely manner.
Talk back to me in the comments: How do you teach your children about saving money? Do they earn an allowance? Have you opened a savings account for them?