It Only Takes a Few Dollars

The chart on the previous page show your child what could happen if she saves a little bit every day and invests that money. After all, $2000 a year is only $5.60 a day.

Offer a practical lesson to demonstrate that little things that cost just a few dollars add up. A good example: Take her to a coffee store such as Starbucks and order a coffee and bagel, which will equal about $3.00. Explain to her that if you had made the same coffee and bagel at home, it would cost about $.30. In one year that daily $3.00 expenditure adds up to almost $90 monthly and $1,100 annually. So called 'little' things can quickly add up and cost more than you realize.

You should make sure that your child knows that everyday spending decisions will have a more powerful impact on her financial future than most investment decisions she will make.

Page 4 of 15: Saving and Investing

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