Three Ways You Can Help Children Save

Financial literacy isn’t something that’s limited to a week or a month – it’s a lifelong journey that entails lessons at all ages. When you start those lessons at a young age, you’re helping the children in your life set up long term financial success.

There are easy and educational ways you can help teach savings lessons to the children in your life, from simple savings in a jar to helping them open their first credit union account. Here are three ways you can help children learn to save that will serve them throughout their lifetime.

1: Help Your Children Set Savings Goals

When you have a specific goal in mind, it can be easier to save money towards it. One potential way to help your kids stay motivated with their savings is to help them identify a goal. Whether it’s saving up for a new toy, video game, or spending money on that theme park vacation, helping them identify a savings goal can get them more excited about putting money away.

Learning to save isn’t just about what they are going to get at the end of it. Creating a goal can teach them about the value of money, the importance of savings and why budgeting matters. Giving them confidence with their money today will help them develop smart skills for the future.

2: Use a Clear Jar to Start Savings

It’s one thing to tell a child they have a certain amount of money saved, but it can be a more valuable lesson to physically show that money growing. Storing their cash in a clear container before they can open a savings account can showcase their progress and teach them how money grows when you put it away to save.

As the clear jar fills, take the time to re-count the money to put a number to the visual growth. And when your child reaches a milestone, like a savings goal or filling the jar, allow them to spend the money on something they want and start the process again. This process teaches delayed gratification and the value of saving towards a much larger goal.

3: Open a Savings Account at SESLOC Credit Union

If your child is earning money from an allowance or part-time job, it might be time for them to open their first banking account. With a parent or guardian, children 13 or older can open a Primary Share Savings account.

A Primary Share Savings account allows your children to watch their savings build up while earning dividends on their money. They can set savings goals in online banking and see their money build up with your help.

If they are saving for a bigger goal – like a down payment for that first car or college expenses – parents or guardians can open a Building Block Share Certificate for their children. With a $250 minimum to open and deposits in $25 increments throughout the one-year term, this dividend-earning account is great to showcase the value of savings over an extended period of time.

For teens who are ready to take the next step, a Basic Checking¹ account is the next step. Children can start learning the basics of saving, spending, and how to manage money on their own (with a little help). Plus, adults can get alerts when balances get low, allowing them to start budgeting talks and discuss ideas like needs, wants, and long-term savings. And as they get older, they won’t “age out” of their account – they can keep it open as long as they remain a member in good standing.

Remember: There is no wrong time to talk to children about money and help them understand the value of good budget habits. By starting early, you can give them a head start on building long-term wealth and financial success.

1: Basic Checking is not eligible for Courtesy Pay Service or SESLOC Rewards Program for debit cards. Basic Checking incurs a $2.00 monthly fee for paper statements. Refer to the Basic Checking Truth in Savings Disclosure for more information.