By Kelly Raison
Vice President, Chatham Branch Manager
NMLS #: 662902
When it comes to teaching your children about money management, earlier is better!
But saving money can be a difficult concept for a child to learn, with new toys and gadgets jumping out at them from every ad and store.
Make saving money exciting for your kids with some of these steps that help develop the habit of saving:
- Create a Spend/Save/Give plan. Establishing the habits of spending, saving and giving early on will help carry through healthy financial habits and decisions to your children’s adult lives.
Help your child decide how much to contribute to the three categories of Give, Save and Spend. Then, with each new allowance or gift of money, assist your child in dividing that money accordingly.
To keep it fun, make jars dedicated to Buy, Spend and Save, or buy pouches to help keeps those funds separate.
- Take them to the bank to open a savings account. Many banks offer savings accounts specifically for children, with minimal deposits required. An INB Youth Savings Account will help teach your child about the steps needed to open an account at bank and the responsibility of maintaining a positive balance, as well as save for either the short-term or the long-term.
- Help them set a goal. Working toward a goal is a great lesson to instill in a young child, especially when it comes to saving their money. Help your child decide on a certain amount to save, perhaps with a special treat when they reach their goal, or a specific item or experience they want to save for.
Print out a savings goal chart as a visually appealing way to help your child keep on track. Or if you open a savings account at the bank, sign up for online banking so your child can log in at home – with your assistance – and check his or her savings balance. It is exciting for kids to see their progress!
- Match their savings. If this is something in your budget, matching your child’s savings will give them even more incentive to save and allow them to see more progress with their savings goal. A savings match also gives them an idea of what it is like to experience an employer’s match within a retirement program when they enter the workforce.
Encouraging saving early in your child’s life will pay off as they learn how to better manage money both now and in the future. When you’re ready to move from the piggy bank to a bank account, open a Youth Savings Account at INB to get the added benefit of earned interest!