Teaching kids to allocate their money

Learn about: Teaching kids to allocate their money from Gregg Murset, CFP,...
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Teaching kids to allocate their money

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I get asked the question all the time, "Okay, when my kids earn money, how do they split it up or how do they allocate it?" And I think there's a great way to start. The foundation here is they need to save some, they need to share some and they need to spend some. And the percentages that I recommend are 50% in savings, 10% in sharing and 40% in spending. And of course, that's gonna change over time because once you get teenagers, they're gonna wanna spend a lot more than they save. But if you can start them when they're young to start doing that save, share and spend allocation, that's gonna lay a good foundation for them to understand good financial management for the rest of their life. One other thing that I think is - that if that kid learns really early on to start sharing with someone, that's gonna stay with them for their whole lives and there's a saying that I really like, it's: You earn a living by what you make and you make a life by what you give. And I absolutely believe that and when kids learn that really early in life, they understand philanthropy, they understand giving and they understand sharing, and that really changes their life and it stays with them for the rest of their life. So is it even important to save if they can only save five dollars a month? Absolutely. You've gotta start somewhere, those little five dollar deposits are going to add up over a lifetime and the thing about it is if they start saving when they're little and they save five dollars, it's gonna be a lot easier for them to save fifty or five hundred when they get older.

Learn about: Teaching kids to allocate their money from Gregg Murset, CFP,...

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Gregg Murset, CFP

Founder & CEO, MyJobChart.com

Gregg Murset, CFP, is the father of six children, a Certified Financial Planner and the Founder and CEO of the fastest growing website, MyJobChart.com, which teaches kids about work and money.

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