It’s never too early to start teaching your kids the importance of saving money.
While we’re bombarded with temptations to spend, saving money needs to be an important part of our financial education.
Learning to save helps set goals, and shows how earning interest helps money grow over time.
A good way to start is to take money earned from an allowance or job and to divide it into short-term spending money, savings for a more costly item such as a bike or a computer, and longer-term savings for things like college or a car.
For younger kids, money could be kept at home in separate containers and parents could help them count the money and show them how much they need to save to buy something they want.
For teenagers, opening an interest-earning checking or savings account is a great way to show how their money is protected in a financial institution and how compound interest helps money grow over time. And with online or mobile banking, they’ll be able to learn to monitor their savings and spending.
As a parent, you can set an example by talking about how you save money for items you purchase. You can also teach them about value by comparing product prices and showing them how they can save by not always buying the most expensive thing.
The goal of saving is to teach your children about how to avoid debt and to set aside money for when they need it most.
You can learn more about our savings options and accounts here.