Teaching Youth to Save
Financial habits are learned at a very young age. These days, people are increasingly forced to pay greater attention to personal finance and are discovering that they are unprepared to handle their own finances, let alone educate their children. While many parents are seeking more information to better their own financial situation, they often forget or are not confident enough to pass on the lessons they are learning. This needs to change. Remember that it’s never too late to start talking with your kids about finances if you haven’t begun yet, but ideally you want to begin as early as kindergarten. Current data shows that children of wealthy parents are more financially savvy later in life, but this is a matter of confidence on the part of parents. Even low-income families can be confident about their financial situations, and pass that onto their kids through open conversations and planning. Educating yourself, along with your children, is absolutely essential for financial fitness and security later in life.
Make a Habit of Saving With Your Child Each Week
Each week, set aside a few dollars and put it into a savings account or into a piggy bank at home. Make sure you have one account for yourself and one for your child. As weeks go buy, you and your children can watch your respective savings grow! Be sure to stick with your savings plan and only spend your savings on things you really want. By doing this you will not only start to save yourself, but will also help your child start to save as well.
Set a Goal. Make a Plan. Save Automatically. With Your Children.
- Create a savings plan and goal. Pick something you want to save for and an amount that you can realistically save every month. Most young savers choose to save between $5 and $25 dollars a month, but save more if you can.
- Keep your savings in a bank account or some other place that is not easy to access. If you keep the money you want to save in your wallet, it’s too easy to spend.
- Have a plan for making regular deposits into your savings account or piggy-bank. If possible, it’s best to make your deposits automatically, by asking your employer to deposit a portion of your paycheck directly into your savings account. Or, set a schedule for yourself and pick one day each week or each month to make a deposit.
Written by Katie Bryan, America Saves communications manager.
Are you ready to set your goal?
Check out your local credit union for savings accounts for kids. My credit union, Fort Worth Community Credit Union, has a Young Savers Club for kids under 12. FTWCCU’s Young Savers Club is where kids up to age 12 and their parents can learn about saving together. Here are some of the perks:
- Only $5 to open an account
- Earns interest
- Receive yearly Birthday Cards
- Coloring Contests held throughout the year
- Young Savers Club Savings Account
- 6 Month Certificate of Deposit (Minimum $500 to Open)
- 12 Month Certificate of Deposit (Minimum $500 to Open)
- Automatic Allowance Transfers from Parents/Co-Signer Account