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Bank survey says most parents are teaching financial savings

This week is national Money Smart week and Friday is Teach Your Children to Save day.

A new BMO Harris Bank survey says a lot of parents are already getting their kids to put money in the bank.

“It was quite interesting to find out that about 70 percent of parents have begun that process already,” said BMO Harris president Steve Johnson.

He said that parents should start savings accounts for their children at around five years old.

“Quite honestly, you want to have that foundation built quickly, so that your children can really understand the value of money,” Johnson said.

Every time your children receive money for a birthday or a holiday, they can sock some away in savings, as Johnson suggests.

“Of course, you want your kids to enjoy that money, and go out and buy a game or a toy with that money,” he said. “But if you put a small percentage, maybe 10 to 20 percent of that money, into a savings account…that will continue to add up.”

Johnson said that the teen years may be a good time to start teaching your kids about the benefits and risks of investing in the stock market.