3 ms·

Do you boost the interest of their savings account to make more attractive?

• Quinzel 2y ago
  No, because their savings accounts actually have fairly decent interest rates for kids accounts. However, I do give them extra money on birthdays and Christmas. Also, when they do really good things, (ie, achieve something good at school) they always get a cash bonus. Interestingly, even though the the non-ADHD one does better at saving, he doesn’t understand the concept of interest yet. However, the ADHD one clicked on very quickly to how interest works, and his bank has a policy that if you withdraw from your savings more than once in a month, you lose the interest for that month. So now the older one has started to plan withdrawals around that idea. It’s not the exact lesson I would like him to learn, I’d prefer that he just didn’t withdraw. But I like that he’s coming up with his own strategy to manage his money (and impulse control issues).
• hot_gril 2y ago
  When my parents got me a bank account as a kid, the banker explained to me how great compound interest is. Then I asked what my APR is, and she said 0.01% but I still make some money off my $500, then I asked if it's rounded up or down... A few months later, I took out all the money and invested it in my favorite company Apple, though my dad talked me into diversifying it. I learned as a kid that savings accounts are a scam, and that's still what I think. Even if it's 4% today, that's basically losing wealth each month, and I'm not putting anything more than emergency money in there.