Although most children are used to dealing with money from a very early age in the form of allowances, gifts, and even bribes it is rare that they are taught how to manage those funds properly. The choices of how they invest or spend their meager incomes is often left to them. Making money grow and work for them rarely being addressed and seldom a priority as images of sweets, treats, and toys dance through their minds.

Generations born after the 'baby boom' era may need to rely on a strong foundation of how to grow their money that they were taught early on. Some estimates and predictions about their financial reliance on government programs such as social security retirement funds may yield little to no return when it comes time for them to exit the workplace even though they may have been contributing all the while. This effectively puts their futures financial stability completely into their own hands with no safety net so to speak. Earlier generations had the ability to mismanage money and still end up with some form of fall-back retirement fund, even if meager. Those days may be long gone before we know it unless drastic changes are made to the way social security is funded. With that in mind parents taking a pro-active role in their children's budgeting and financial investment skills is a great way to plant a seed that will yield its fruit in seasons to come and ensure that they will not develop bad financial habits that they carry into adulthood.

We don't have to try to teach them advanced investment techniques. Our role is to simply plant the seed of good money management and growth. There will be plenty of opportunities to learn the more advanced lessons, when they are ready to apply the foundation laid down early in their childhood.

RESPECT SAVING

Some of the first lessons involve simply respecting a savings account and the process of savings. From each allowance, gift, reward, or even bribes received they are to first pay their savings 10%. This is money they cannot spend, not now, not later. It is wise to save a bit more than this, but 10% is the minimum that should go into savings. Savings can mean a jar, a piggy bank, an old sock, or a real savings account. If we teach them that no matter how much or how little they receive they need to set aside a minimum amount that is not to be touched, in this case 10%, then that behavior will hopefully continue on into adulthood where paying thyself into a savings account can build

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