America Saves Week, February 26th-March 3rd, is the perfect time to begin teaching your children about money and the importance of saving. With these seven tips, you can educate your children about money and teach smart saving habits at an early age.
Talk openly about money with your children: Communicate your values and experiences with money. Encourage them to ask questions and answer their questions openly and honestly.
Avoid Impulse Buying: Teach your child to avoid impulse buying. Make it a habit for your child to ask “Do I really need this?” before making a purchase.
Set up a chore chart and give your child an allowance for completing their tasks: An allowance like this can help teach your child about money and savings. Encourage your child to save a small portion each week. The three jars method- one for spending, one for savings and one for charitable contributions can help install a sense of accountability.
Open a savings account: Open a savings account for your child when he/she is old enough. Take your child with you when you make deposits or show them how you can deposit a check using your mobile banking app. This will help your child learn how to be hands-on in their money management.
Set goals: Help your child set saving goals. Some can be short-term like a video game or a book. Other goals can be long term like a laptop or a car. Include a target date and how much money needs to be saved each week to accomplish the goal.
Pay bills together: Invite your child to sit with you occasionally when you pay the household bills, so they can get an idea of costs and how to use a checkbook and online banking systems. Show your child how to read a stock or bond report.
Be an example to your child: Set a good example for you child by paying your bills on time and being a conscious spender and saver. Your children will likely pick up on your saving and spending habits.
NCB makes saving easy. Whether you’re saving for your child’s college tuition or opening a savings account for you child, we have an account to meet your family’s needs.