We hold the future......

Friday, January 21, 2011

Creating a Kid's Savings Plan

I have been trying to save money regularly for my kid's savings accounts I had opened last year. It has been difficult the past few months since my husband lost his job, but I am getting back at it now.

I have heard that kid's allowances should be $1 per age per week. For example, my daughter 'A' is 8, so she gets $8 per week, and so on. I think this works good. This is seperate from chore money. My 2 daughters have 4 daily chores they are in charge of getting done. If they do anything more than those chores, then they earn 1 chore dollar per chore which equals .50 each.

So the chart below is for their savings accounts. It totals at the end. I have done 21 years of contributions but you can stop at any age.

Age~Yearly Total
1 ~$52
2 ~$104
3 ~$156
4 ~$208
5 ~$260
6 ~$312
7 ~$364
8 ~$416
9 ~$468
10 ~$520
11 ~$572
12 ~$624
13 ~$676
14 ~$728
15 ~$780
16 ~$832
17 ~$884
18 ~$936
19 ~$980
20 ~$1040
21 ~$1092

Total: $12,012

This is a good amount of money for someone just starting out to have. I want to be able to send my kids out into the world with a safety net and support system. I didn't have any money when I moved out at 17, I had to eat alot of ramen (2 months straight, 3 meals a day!). Even after working for 6 months I had nothing to show for it. I want to teach my kids more about money than I ever knew as a kid. I am still learning from my money mistakes and I don't want my kids to follow in my path.

Hopefully this, and some more education on money, will show my kids how to keep money set aside for the future.

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