6 Tools Available For Your Kids Making Money

Alright mom and dad you have achieved your goal and you have your kids making money. Now, what will your children do with that money? Some parents know their children should have a savings account but are there any other ways you can teach your children to use their money. Here is a great suggestion that follows and it uses the acronym MAGNET. This acronym is a simple way to help you remember 6 different types of accounts your child can place their money.
One Account
M - Money Magnet - This account will be your child's long term saving account. Have your child place 10% of their money in this account and as it is with any long term savings account don't touch it except for extreme emergency.
A - Adventures & Fun Account - Don't just have your kids making money let them enjoy some of what they work for. You should have them put 10% of their earnings here as well.
G - Give Account - It is important that you teach your children to help others less fortunate than themselves. Apply 5-10% of their earnings here and help them to identify organizations that the child would want to help or assist.
N - Next Goals Account - Don't just go out and buy that next bigger ticket item, let your child save towards it. 10% of their income can go here to help them save towards Christmas or vacation or generally any item that may take some time to save for. This is a great account because you are not only teaching your children how to save but showing them how to work towards a goal.
E - Education Account - Have them place 10% of their money here as well. This money can be used for traditional college education but also any education that could help them become "street smart" in their financial education. This could be a financial seminar or even training for a business opportunity.
T - Today's Essentials - 50-55% of their money should go here to cover living expenses. Imagine the joy of your child becoming self sufficient and purchasing their own clothes or even helping buy groceries, that is what this account is for.
So there you have it parents, the tools are available to have your kids making money and then have them saving and using it wisely. The key is to continually educate yourself and to pass that knowledge down to your children. Finally, remember that your children are only young once but they grow up quick, so get as much information as you can because you are helping shape their financial future.