Segment 1

Why It Pays to Start Early: A Money Lesson for Kids (and Parents)

You’ve probably heard the phrase, “It’s never too early to start saving.” But when it comes to kids and money, starting early isn’t just smart—it’s powerful.

Teaching children about compound interest is a great way to show how money can grow over time. Think of it as “interest on your interest.” For example, if your child puts $100 in a savings account that earns 5% a year, it grows to $105 the first year—and $110.25 the next. The extra $0.25 came from interest earned on the interest!

So what can parents do?

• Open a savings account together: Look for one with no monthly fees and compound interest.
• Match their savings: Consider adding 25 or 50 cents for every dollar they save. It motivates them and mirrors a company 401(k) match.
• Celebrate effort, not just outcomes: Whether they save $5 or $50, praise the habit.

Starting small now sets them up for something much bigger later.

This summer, make it a family goal to save together—and talk about how time and consistency can grow wealth. Because when it comes to money, time really is money.