Danny O’Connell, CEO of Next Level Insurance Agency LLC is a firm believer of the power of the early financial education, and shares about the 50% spending rule that helps his children to be financially responsible early.
I was fortunate when I was a young child my parents taught me to save money. When I got money for birthdays or Christmas I would take a portion to the bank and deposit into a savings account. When I had enough money I would invest in a CD to earn interest.
Now as a parent of 4 children we have a rule that for every dollar they get for gifts, birthdays, holidays, etc. they have to put 50% into their savings accounts. Our children are now 4, 6, 8, & 10 and they know how much they have in their savings accounts and will ask us to deposit money. They have a competition among each other on who has the most in their savings accounts.
Our children know this money is to be saved for when they get older for large purchases such as education or a car.
<Danny’s lovely family>