A man and his wife moved back home to Texas from Louisiana. The husband had a wooden leg, and to insure it back in Louisiana it cost them $2,000 per year!
When they arrived in Texas, they went to an insurance agency to see how much it would cost to insure his wooden leg.
The agent looked it up on the computer and said: ‘$39..‘
The husband was shocked and asked why it was so cheap here in Texas to insure it because it cost him $2000 in Louisiana!
The insurance agent turned his computer screen to the couple and said, ‘Well, here it is on the screen, it says: Any wooden structure, with a sprinkler system above it is $39… You just have to know how to describe it!‘
We all know that children are the future, so let’s teach our children how to secure their own futures by developing their saving habit.
Get Started…
Convincing children to do anything is challenging, much less convincing them to do so regularly. Developing a saving habit may be difficult for children because they may not understand why there is a need to save since their parents take care of all their needs. Here’s an approach to think about. Just as you save for big ticket items, help your children to set and achieve savings goals. You could make a deal with them for special “nice to have” purchases – for every portion they save, you will match it. That encourages saving and regularity!
Then, Find the Money to Save…
You may be thinking where do children get money to save? Well, as it turns out there are lots of sources. First, cash gifts for birthdays or special occasions can be saved in whole or in part. Second, encourage them to save some of their allowance and lunch money. Perhaps you can tie increases to their ability to demonstrate disciplined savings! Third, other than standard chores, maybe you can offer to pay them for special tasks and then encourage them to save all or part of those earnings. Think creatively, apply some discipline, and your children will easily develop the saving habit.
And Now, Decide Where to Save…
A “piggy bank” is always a good starting place because it develops the habit of putting money aside. Experts say use a clear glass jar so children can see the money “growing” with every “deposit”.
The real benefit to your children will come when they begin to understand the power of compound interest, which is what you can get from a savings account. Don’t forget also that long term saving is rewarded; therefore, it is good to start as early as possible.
Insurance | admin, 20 Jun 09 | 
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