Teaching children how to save from a young age could help set them up for life. When you are a kid you think money grows on trees, or at least your parents have an endless supply, however, the reality is quite a stark difference. Starting a savings account for your children can help them build great life habits and prepare them for the real world. Here are 4 tips to help you guide your kids down the right path of savings.
Explain to them the importance of saving money and having a savings account.
Kids savings accounts can help teach your children the value of saving money while watching it grow and enjoy the rewards from saving for a goal. Explaining to them that saving money will help you have enough money when you want to purchase something. Plus, showing them how keeping money in an account allows the credit union to pay them for having money in an account.
Opening a kids account and make going to the credit union fun.
Make it a big event, play it up huge, and tell them today we are going to the credit union to open you your very own savings account. Make it a fun trip to the credit union and let them learn about all the perks they get. Alltru’s CUbby Youth Savings account even offers an incentive for saving their money and there are no fees attached to it.
Set a savings goal and then allow them to spend a little so they reap the reward.
The joy of seeing your bank account grow as a child only last for so long. Make sure you allow them to spend a little so they see the reward from saving their money for a period of time so that they have enough to go and purchase that toy that they wanted. This is a great opportunity to explain and teach them how they can also make not only just deposits, but also withdraws at the credit union and they don’t think they just take your money, they also give you money as well.
Lead by example.
This is the last and most important step in teaching your kids about saving money, opening an account, going to the credit union and spending money. Take the time to explain to them their bank statements, what it means to have an account with interest, how to deposit and withdraw money at the credit union and then having enough money to spend it when you need to.
Teaching kids how to save money may seem like a tough task. But using these tips, you can make your child’s understanding of money fun and accessible. It’s an investment in knowledge which truly pays the best interest.
Until next time,