This lesson on teaching kids about money is a great one because it is all about how being responsible with just a little bit can go a very long way! The Bible tells us that we should be faithful in the little things and today’s topic is a great reminder of that.
Luke 16:10 “One who is faithful in a very little is also faithful in much, and one who is dishonest in a very little is also dishonest in much.”
The sooner you begin saving, even if it is just a little bit, the more money you will have built in the long run because of compounded interest. There are some examples below that you can talk about with your child to demonstrate your point.
1) Tell your kids that compounded interest is the interest that you earn not only on the money that you make but also the interest that you have earned.
2) Show your child the following: If he sets aside
$100 every year starting at age 14, he’d have about $23,000 at age 65. However, if he begins saving at age 35 he’d have about $7,000 at age 65. Assume the account earns 5% every year.
3) Go to the investor.gov website calculate how much interest your kids can be earning.
4) Talk about how much money they could be putting in a savings fund and if it will make a difference in the future.
One more lesson to come for this age group, stay tuned!
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.