There's Hope for Kids to Learn About Money in my town............

[FinanceDude]

My son is in 2nd grade. They are doing a section on currency and money. Yesterday one of the local banks did a presentation about saving and money at the elementary school.

My son got a list of terms that are commonly used in banking, a "fake" checkbook" to practice balancing, and a coupon good for a movie and a custard sundae if they open a savings account at the bank she works at.

I know, cheesy marketing, but my son was all bubbly and curious about it.......................

 

[TromboneAl]

And if he opens a savings account at the bank, and puts $10 in it, after a year he'll have about $10.04.

Well, that should get him really excited about saving!

[Based on my bank's .35% interest rate for regular savings accounts]

 

[FinanceDude]

And if he opens a savings account at the bank, and puts $10 in it, after a year he'll have about $10.04.

Well, that should get him really excited about saving!

[Based on my bank's .35% interest rate for regular savings accounts]

And THEN I can put a serious look on my face, and say: "Hey son, wanna make some REAL MONEY"!!!...........and then show him prosper.com...................

 

[wabmester]

Our 4-yo has a savings account at a local bank. Every once in a while she dumps the coins from her piggy bank into the free coin counter at the bank. And they give her a free movie ticket for every $100 increase in her savings balance.

Not exactly a lesson in the magic of compounding, but it does give her a thrill and a savings goal.

 

[TromboneAl]

I ran my $10 * .35% calculation several times, because I couldn't believe that it would yield only 4 cents in a whole year. I seriously think that a bank account like that will discourage any kid from saving.

So, I'd recommend a "Bank of Dad" in which you supply a 100% interest rate.

I considered writing "Bank of Dad" software so that an "account" like that could be easily managed (produce statements, calculate balances, etc.). Still think that's a good idea, too bad I'm retired.

 

[jazz4cash]

I set up the Family bank on the home computer...it's just an Excel spreadsheet, but the kids can see daily interest compounding into thier accounts....I pay 10% APR!! It encourages them to quickly put a portion of any money they get into thier "account". When they hit mid-teen years, I shut down the interest payment, so they transition to a conventional account.