As adults, we realize the importance of savings, but are we teaching our kids how to save? Let’s discuss the benefits of starting to save when you’re young and how we can teach our children to be prepared for financial success.
Building Good Financial Habits
Saving money requires discipline and planning, and by starting early, your child can develop these skills before they have to make larger financial decisions later in life. This practice also helps them to understand the value of money. If your child receives an allowance, help them to set up a budget, including a portion of the allowance going to savings.
Having More Financial Security
Putting money aside for emergencies or unexpected expenses will teach your child that they can handle those events without going into debt or having to rely on others for financial support. Speak with your child and explain the peace of mind and confidence this practice can give them.
Preparing for Future Financial Goals
Whether it’s buying a car or pursuing higher education, having a savings cushion can help your child achieve these goals more quickly and easily. And by starting to save early, your child can take advantage of the power of compound interest, which can significantly increase savings over time. Help your child to set goals, even if they aren’t big ones. Make it exciting for them to work towards and achieve those goals.
Starting to Save
The easiest way to start saving is to open a savings account for your child. Help them set a savings goal and establish a regular savings routine, such as automatic transfers. You can also set up their account for online banking so they can easily see their balance at any time.
Visit any branch to open a youth savings account today!