Teach Them How to Save – Starting the Conversation
Starting a conversation with your child about saving money can be difficult – but it doesn’t have to be scary. By starting a dialogue early on, you’re opening the door for them to be financially smart and make positive decisions later in life. We’re offering a few tips and tricks to help you teach your young one to be great at saving!
What are they saving for? – When teaching young children how to save, the first step should be to help them decide on something to save for. Whether they’re interested in a sweet new gadget or a brand new bicycle, it’s important to share with them that they will need to earn money in order to reach their goal.
Set a plan – Once he/she has a goal in mind, help them come up with a plan to be successful. What sort of “jobs” can they come up with to earn money? When do they want to achieve their goal by? By showing them how to create a realistic timeline, you will encourage them to use this problem solving skill in the future for their bigger savings goals.
Open a savings account – Opening a savings account for young children is a positive way to introduce them to money management. This can be a great learning experience for them to see how to build their savings, earn interest, and get familiar with banking. Often, credit unions will have fun and educational programs to help them get acclimated, such as Northeast Credit Unions’ MyFunds Savings Account. Opening a savings account for them is easy and allows them to join a fun Smart Savings Kids Club to win prizes and play games.
Help them track their savings – Often times, it’s helpful for children to see visuals as their money is accruing to keep them engaged, excited, and understanding of how their money is reaching their goals. A great way to help them do this through a savings account like MyFunds, is to enroll them in Online Banking and use the MyMoney Management Tool. This allows you to help them choose their custom goal and visually see how they are reaching it.
Praise them for a job well done! – Once you’ve helped them reach their first savings goal, be sure to praise them for achieving it! It feels good to accomplish our milestones, and they’ll be likely to set a new goal once they’ve completed the first. While you’re at it, give yourself a pat on the back! You’ve officially taken the first step in guiding them towards a positive financial future.