Helping Your Child Save
11 Tips and Tricks You Need to Know
Learning about finances is important at a young age. Here at Great Basin, we offer a variety of resources to help get your child started, but a lot of their learning will come from you – their parents! Here are a few tips and tricks to help boost your child’s savings, help them learn about smart spending habits, and have some fun.
- Have your child open a savings account and have a Member Service Representative go over what it mean to “save” funds, and have the child ask any questions that they may have.
- Set up an automatic transfer into your child’s savings account that comes out of your payroll.
- Teach your child to “pay themselves” first. Meaning if they receive funds that they always put something away in savings, then they could spend the rest of the funds.
- When your child is old enough to work, have them split their paychecks to have money going into their savings every time they get paid.
- Have them get in the habit of tracking their purchases, maybe there are things that can be cut out, and put those funds in the savings account.
- When they start working, you can start thinking about starting on their retirement and joining 401k plans, especially for companies that match them.
- Take advantage of speaking with a free financial advisor, talk to them about ways to get started in products such as an IRA.
- Education on credit cards and credit is crucial at a young age. Encourage your children to not use credit cards if you aren’t able to pay them back on time. Using the credit limit you can afford will help you not touch your savings account.
- Use real life examples to teach them the value of money. You could use “fake money” to teach children the value of it, or a game. An example being, if they do their household chores they get $5. But if they misbehave they have to give you $10. Helping them understand the value of a dollar!
- Have your child purchase their own wants. If they are wanting to purchase a new video game, you can have them save up for that video game and have them pay for it. This may make them think differently on the way they spend their money.
- You can download saving apps for their iPads or phones. You can even get a prepaid card where it could teach children that once their money is gone, that is gone.
These are just a few tips and tricks that can help your kids start saving money. For more in depth learning, check out these short educational modules we provide free of cost!Share: