Hey parents

Does your teen think they're too young to start thinking about saving for the future?

Coins in a retirement savings jar and a clock
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It's common for teens to feel that future savings aren't a priority at their age. However, starting to save early has several advantages that can significantly benefit them in the long run. If only they would listen to you. "Le sigh", said every parent, everywhere.

Here are some strategies and resources to help with that.

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Strategies and Resources

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 Teach them the magic of compound interest

Explain this to them:

"When you start saving early, your money has more time to grow through compound interest. This means that not only does your initial amount earn interest, but the interest itself also earns interest over time. It's like a snowball effect – the earlier you start, the bigger the snowball grows by the time you need it."

There are tons of videos on YouTube that explain compound interest in a way that teens will understand.

 Teach them about the power of sinking funds

Sinking funds can be an excellent tool for teaching teens about the power of saving money. A sinking fund is a strategic way to save money for a specific goal or expense by setting aside a small amount of money over time while avoiding debt.

Through sinking funds, teens can learn the practical aspects of saving money and experience the satisfaction of reaching their financial goals through discipline and patience. This approach not only helps them understand the power of saving but also instills important financial habits that can benefit them throughout their lives.