Teaching children the value of money and the importance of saving from a young age sets the foundation for a lifetime of financial responsibility. While saving money might seem like a daunting task for kids, instilling good saving habits early on can empower them to make wise financial decisions in the future. Here are five practical tips to help kids kickstart their savings journey.
1. Set a Goal
Encourage kids to visualize and work towards a saving goal they are excited about. Having a clear goal in mind will give them something tangible to work towards and motivate them to save consistently. Whether it's a Nintendo Switch, a cool new bike, or even a college fund, having a clear, attainable goal will keep them on track. Rename your account to match your dream in Mobile and Online Banking to keep the excitement alive!
2. Benefit from Earning Interest
Let your money do the hard work for you! With Arbor's savings accounts and Certificates of Deposit, your kid’s money will grow all by itself. Plus, money is insured by the NCUA up to $250,000 per account!
3. Easy Access
Keep an eye on your cash with Mobile and Online Banking. Move money around, check your progress, and set up handy Alerts to make sure you're always in the loop. Parents can also easily set up automatic transfers into our youth accounts for allowance.
4. Create a Savings Jar or Piggy Bank
Provide kids with a physical container like a savings jar or a piggy bank where they can deposit their money regularly. Seeing their savings accumulate visually reinforces the habit of saving and makes it more rewarding. All new Explore’s Club members get a piggy bank at account opening.
5. Talk About Money with Your Kids
Be a role model for your kids by demonstrating responsible financial habits yourself and talking about money with them. Let them see you budgeting, saving, and making thoughtful spending decisions, and work with them to do the same with their savings and spending. Talk with them about the difference between wants and needs. They will feel confident in making their own financial decisions when they are older and know you are a safe space to ask questions.
Learning to save money is a valuable life skill that can benefit children throughout their lives. By implementing these practical tips and fostering a culture of saving at home, parents can empower their kids to develop sound financial habits, set achievable goals, and build a secure financial future. Remember, the lessons learned about saving money in childhood can have a lasting impact well into adulthood, shaping their attitudes and behaviors toward money management.
