Teenagers are more likely to subscribe to the "instant gratification" approach to money than simply wanting to save. But with your help and guidance, your teen can learn the value of saving.

• Establish a program where you match their savings dollar for dollar (or 50 cents on the dollar). Doing so will help your teen’s savings grow more quickly and provide a powerful incentive to make saving a regular habit. It will also pave the way for learning about the workings of 401(k) and other employer-sponsored retirement plans, an important workplace benefit.
• Help your teen establish goals and write down a savings plan to meet them. Encourage him or her to use our Savings Calculator to project how long it could take to reach specific objectives. It can be both exciting and gratifying to watch firsthand how savings can accumulate toward a goal.
• Set a good example. Remember, the best way for you to teach your kids is to be a good role model. Talk to them about your own goals and how you’re on track to reach them. If you’re making trade-offs too, like forgoing a gourmet latte and making coffee at home instead, share them with your teen so he or she can understand that saving is an important lifelong endeavor.

Starting small can result in big savings. If you put aside just $2.74 a day and don't earn any interest at all, you’ll end up with $1,000 in one year!

Building Savings

Offer these suggestions to your kids as a way of helping their savings grow faster:

• Put 10% of all income into savings.
• Include savings as an “expense” in your budget.
• Use a direct deposit service. (If your son or daughter has a job, he or she can request that a specified portion of each paycheck be deposited directly into a savings account.)
• Start small; depositing even a dollar a day can add up!
• Deposit a portion of any unexpected income (such as a gift or bonus) directly into the savings account.
• If you’ve paid off a loan or credit card balance, continue to put the same amount toward savings.

The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The type of savings and investment strategies mentioned may not be suitable for everyone. Each investor needs to review a security transaction or strategy for his or her own particular situation. The examples mentioned are for informational purposes only and are not intended to represent results you should expect in the future. Data contained here is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed.