Tip o’ the Morning to Ya – The 50:50 Money Rule For Kids

Rich Habits Word of the Day

Means – System, process or path. Teaching children how to save is the means to financial responsibility.

Rich Habits Fact of the Day

Excerpt from Yahoo finance’s Financially Fit:

To call Dan Nainan frugal is an understatement. He lives in New York City, home to the world’s largest public transit system, but insists on walking. Everywhere. Sometimes for miles on end. When he travels he prefers to couch-surf, and don’t be fooled if you see him at Starbucks. He’s not ordering any lattes. He just stays for the free Wi-Fi.

Oh, and did I mention he’s a millionaire?

“There are two ways to become a millionaire. You either make a lot of money or be a frugal person,” says Nainan. “I’ve kind of combined those.”

Also see: Daily Habits of the Wealthy

In fact the 32-year-old has managed to save a whopping $1.6 million nest egg despite quitting his day job as a software developer five years ago to pursue stand-up comedy. He says what began as a hobby now earns him tens of thousands of dollars per appearance — money that mostly goes to savings.

Rich Habit Lesson of the Day

The 50:50 Rule requires that parents set aside 50% of their children’s allowance, gifts or earnings into a savings account. The remaining 50% is to be used to pay for some major purchase goal your child may have such as a cell phone, video game, skateboard, etc. This gets your children in the habit of saving. When you child has some skin in the game they will learn the value of money. Age twelve is a good age to begin teaching your children the 50:50 Rule.

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Thomas C. Corley About Thomas C. Corley

Tom Corley is a bestselling author, speaker, and media contributor for Business Insider, CNBC and a few other national media outlets.

His Rich Habits research has been read, viewed or heard by over 50 million people in 25 countries around the world.

Besides being an author, Tom is also a CPA, CFP, holds a master’s degree in taxation and is President of Cerefice and Company, a CPA firm in New Jersey.
 
Phone Number: 732-382-3800 Ext. 103.
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