The last blog for this age group is about saving. This is a lesson that I am dealing with myself and it is about how to save our money in the very best way. The Bible even admonishes us to do this by telling us that we are called to provide for our off spring and save.
Proverbs 13:22 A good man leaves an inheritance to his children’s children.
So this lesson is about encouraging your child once they get a job to set up a Roth IRA account. There are some points to explain the importance of this account:
1) Talk about how a Roth IRA allows them to save money and grow interest without being taxed on it.
2) Experiment with different amounts of savings and
interest rates. Use a compound interest calculator
3) Use the “Rule of 72” to estimate how many years
it would take to double your money.
If you invest in an account that earns
8% interest, you’ll double your money in
nine years (72 divided by 8 is 9).
4) Also talk about how some employers will offer a similar opportunity in a 401k, and some even do a match program.
If you like what you read, check out our children’s book, Hooked on the Book, on this website. It is great for parents and kids because it provides the Big Story of God’s miraculous plan for His children in all 66 books in the Bible including colorful illustrations, rhymes and a surprise on every page.