When your kid hits her tween years, it might be time to incorporate a Grow jar to go along with your Share, Save and Spend Smart jars. It’s time to start investing some of that money! You can help them make a relevant choice by having them think about brands that are meaningful to them. Our daughter is a big soccer player, so she chose to buy Adidas stock. She was able to buy 3 shares of Adidas, and we covered half the cost. That was our preference. It may not be yours. We also “match” book purchases. You can match anything you want to incentivize. She’s having fun tracking the stock. Of course, it helps that it’s done well since she bought it. We also discussed the power of compound interest, posted a graph on the refrigerator and my wife and I had a discussion about the importance of starting early. Communicate these things with them explicitly, just like you explained to your child the purpose of an allowance. Of course, you could start a UGTM account, but we felt that was overkill for a starter purchase.
As a quick note, if you’ve been reading this blog, you’ll know that we’ve transitioned to the FamZoo digital allowance from the physical jars. When it comes to financial education for kids, I still like talking about the jars, though. Maybe someday I’ll grow out of it.
Creator & Chief Mammal
The Money Mammals