With savings accounts paying almost nothing in interest,where should you put cash that is needed for short-term goals? “I” think it is good news that we are saving again. Spending more than we bring home has never been a smart financial plan. And, contrary to what I read online and in the papers, clearly we are not JUST saving, we continue to spend. For the last 10 years, I have asked parents to teach their children that they have four choices for their money, they can save, spend, donate and invest. Never has this been more important to remember. We need to exercise all of our money choices, set goals for those choices and watch how using all four choices empowers us to not only survive but thrive.
If you or your teen are saving for a short-term goal of, let’s say, buying a car, then think about the best place to put your money so it GROWS. Check out the interest rate you get on savings accounts, money market accounts and certificates of deposit. Go to www.bankrate.com and check out all your options.
If you or your kids are saving for a long-term goal, like retirement, that is more than 10 years off, then think about a stock market index fund.
These are just a few possible options for your money and your child’s money. Include the kids in this process. Do the research online with your child at your side. Explain to them what you are doing and why.
Today’s economy is offering us great opportunity — to train our kids as we begin to re-train ourselves on how to manage the money in our lives.