Summer is officially over and kids are headed back to school! One lesson that is best taught by parents, is money management and savings. It’s the perfect time to start educating your kids to manage finances by opening a savings account! When your child opens a savings account, he or she will also learn to perform basic banking tasks such as depositing birthday checks or chore money and using an ATM card. Helping your children learn to manage their finances will give them a sense of responsibility and independence while also teaching them about interest. They will be excited to learn that their money continues to increase by simply sitting in a bank account.
Kids who are taught to save, have a greater chance of success!
If the opportunity to teach your children important life lessons isn’t enough incentive to help them open a savings account, a recent study from the Center for Social Development at Washington University in St. Louis demonstrated that children with savings accounts containing as little at $1.00 were up to 7 times more likely to attend college as children without savings accounts. A separate study from the University of Kansas found that children with early access to savings accounts accumulate on average $2000 to every $100 of a child that did not have early access to a savings account. Set your kids up for success by teaching them financial responsibility and help them open a savings account today! All you need is their piggy bank, social security card, and a photo ID if they have one.
Set an example! Start saving yourself!
While you are at it, open a savings account for yourself! Keeping your money in a savings account protects it from theft. Having a savings account with a few months’ worth of living expenses can provide a safety net in case of emergencies or unexpected expenses such as job loss or car trouble. It also encourages financial stability and can even prevent reckless spending as many people are less likely to spend money that is out of sight in a bank account. Finally, having your own savings account sets a great example for your children and provides teachable moments on the importance of managing finances and saving money for the future.