The Science of Saving: Help Your Child Prepare for their Financial Future
It is never too early to teach your child the value of saving money. In honor of National Credit Union Youth Month, we are encouraging all parents to look to the future and empower their children to explore the science of saving. Try these money-saving tips to help your child develop good financial habits at an early age:
1. Start an allowance. Paying your kids for doing certain jobs or chores around the house is a great way to teach them how to save and spend what they’ve earned. Encourage the 1-1-1 method for saving, spending, and giving; if your child was given $9.00 for their allowance (or anything else), have them put $3.00 in a piggy bank for saving, $3.00 in a wallet for spending, and $3.00 in a jar to give to charity.
2. Brainstorm ways your child can earn money. The more money they earn, the more they save! Talk to your child about other ways they can earn money. This can range from doing odd jobs for friends and family, to becoming an entrepreneur and starting a lemonade or snack stand in the neighborhood!
3. Download a savings app. We live in a world of technology, so why not make the most of it when it comes to preparing your kids for their financial future?! There are some great money-saving apps available to help children learn the value of saving and spending. Greenlight is an app that operates as a reloadable prepaid debit card that parents can supervise and control. FamZoo is another great app that keeps track of your child’s allowance, chores, goals and more.
4. Pay them interest. They say a penny saved is a penny earned. It’s important for a child to learn the concept of interest to have a leg up on their financial future. Find a way to pay your child market-rate interest on money they have saved. Sit down with them while they count their savings and add a couple of dollars to their bank while explaining how interest works.
5. Out of sight, out of mind. Like adults, children too will be tempted to spend their money if they see it all the time. If your child is tempted to spend their savings, encourage them to hide it from themselves so they aren’t reminded of it on a daily basis. But make sure they remember where they stashed it!
Credit Union Youth Month is a perfect time to help teach children and their parents the importance of planning and saving for the future. Stop by your local Telhio Credit Union during the month of April for special youth account promotions, month-long contests, and other activities to help your child prepare for their financial future.
Learn more about Telhio by visiting telhio.org.
Telhio Credit Union is open to anyone who lives, works, worships or goes to school in Franklin, Fairfield, Delaware, Licking,Madison, Pickaway, Union, Hamilton, Warren, Butler and Preble counties. Founded in 1934, originally as the credit union for the Columbus Telephone Co., Telhio is a not-for-profit financial cooperative where its members are also its owners. Driven by its philosophy that members come first, Telhio is committed to the highest standards of responsibility and conduct. Telhio offers a variety of innovative programs, services and products to support its members’ financial needs. Telhio offers 10 branching offices throughout Central and Southwestern Ohio and nearly 4,000 shared branching locations nationwide. Federally insured by NCUA. Equal Housing Lender. NMLS #251831