4 ways to teach your teenagers how to save money

Viewers have been reaching out to me in recent weeks about some of the best ways to teach teenagers to save money.

In honor of National Teach Your Child to Save Day, which is Friday, here are four things you can teach your child about saving.

The value of earning money:

If they're not working or doing chores, get them started so they can have their own money to pay for things.

How checking and savings accounts work:

Open a checkless checking account tied to your child's ATM card to keep track of his or her spending. Open a savings account and add to it every month.

The importance of compound interest:

Teach your kids how their money will grow in a savings account with interest.

But also remind them the reverse is true. When you borrow money, you pay money for the money you've borrowed.

How credit can help and hurt:

They need to know how credit cards work and how important it is to build a solid credit history.
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