Inside: Have you taught your kids the importance of saving money? Learn why you should prepare your kids with healthy financial habits by teaching them to spend and save wisely.
One of the best things you can show your child from a young age is the importance of saving money. In my opinion, it’s never too early to start teaching children how to manage their finances and raise child savers.
Money management is a vital life skill that they’ll need to master for their future success.
If you’re thinking about helping your child learn the importance of saving money and opening up a children’s saving account, this article is for you! Keep reading to discover my top tips for raising child savers, the importance of saving money as a child, and the best children’s savings accounts.
Learning The Importance Of Saving Money The Hard Way
As a child, I never really learned the importance of saving money. Mostly because I didn’t have any.
My parents handled all the finances. And financial education wasn’t a lesson of priority in my family. When I was old enough to get my first job and earn my own money, it was a huge wake-up call.
For a long time, as soon as I earned my paycheck, I spent it immediately. I wasn’t used to having my own money or managing it. The importance of saving money was something I had to learn myself.
After many years and many poor financial decisions, the importance of saving money was a lesson learned the hard way. I promised myself I wouldn’t let my children grow up without a solid financial education.
Financial Education For Kids
There is a lot you can do to help your children with their financial educations so they can learn the importance of saving money. If you have younger children, a course I recommend that can aid you in teaching your kids how to save and manage their money is Family Money School.
Whether or not you use a course to help teach your children to be savvy child savers, one of the best things you can do for your children is to start talking about money.
A lot of parents shelter their children from everyday finances, but this is one of the least helpful things you can do for your child’s financial education.
Raising Child Savers
What does your child want to be when they grow up? A nurse? An astronaut? Do they want to own a car? A house?
Whatever your child’s aspirations are, they’re not going to be able to achieve them without learning the importance of saving money.
5 Essential Tips For Raising Child Savers
1) Lead By Example
If you want to teach your children about money, leading by example goes a long way. Modeling sound financial choices for those little eyes watching increases their chance of following in your footsteps when they are older.
Living beyond your means is a lesson kids will quickly take note of.
2) Explain The Difference Between Wants and Needs
Start by helping your kids to identify the difference between their wants and needs. The two are very different, and knowing this will enable them to spend their money wisely.
3) Let Them Earn Their Wants
Let them earn their own money by helping out and doing chores. Once they’re making their own money, set savings goals for them to achieve.
4) Teach Them To Set Goals
In order for children to reach their savings goals, they first need to have a place to save their money. That is where children’s savings accounts come into play.
When they begin saving their money, you can also have them track their spending and offer incentives and rewards for saving their money.
5) Take Them To The Bank
Opening up a children’s savings account is one of the best things you can do to help your child have a successful future. Unfortunately, money doesn’t grow on trees, and if your child doesn’t learn this from a young age, managing their finances in adulthood will be less than easy.
Opening a savings account for your child at a young age starts you on the path of raising successful child savers.
Importance Of Saving Money
There are lots of reasons why children need to learn to save money. Not so that they can afford the latest game or toy. It’s so they have the skills to save money later in life.
Learning to save for an emergency fund is essential. You never know when unexpected expenses might crop up in life. To have peace of mind, saving for an emergency fund is vital.
Your child might not need to now… But at some point, they’ll need to start saving for their retirement. It’s never too early to begin saving for your future. So why not teach your kids the importance of saving money while they’re young?
In the not so distant future, your child might want to save money for a downpayment for a house. Saving can also maximize interest rates which will, in turn, increase your savings pot.
While saving money can help you with essential things in life like buying a house and retiring, being able to save money will also enable your child to afford some of the more beautiful things in life like vacations, a new car, and other luxury items.
It’s never too early to teach your child the importance of saving money.
Best Children’s Savings Accounts
When it comes to children’s savings accounts, there are a lot more options than you might think. Here are some of the best children’s savings accounts today.
Capital One’s 360 Kids Savings Account is one of the best children’s savings accounts as it has an above-average annual percentage yield (APY) of 1% on any balance in the savings account.
The Capital One 360 Kids Savings Account doesn’t charge a monthly fee or require a minimum opening deposit. The thing I love most about this children’s savings account is that it has an app to help children and parents manage the account.
Alliant Credit Union Kids Savings Account has a very high APY of 1.9%, which helps to teach kids the importance of saving money and compound interest. Your child will be able to see their wealth grow faster than it would inside a piggy bank.
Better yet, if you opt for electronic statements instead of paper ones, there’s no monthly fee for this child saver.
BECU Early Saver Account has no monthly fee and a low minimum deposit requirement. But that’s not the best thing about this child saver account.
They offer an incredible 6.17% APY on the first $500 deposited into the children’s savings account!
Bank of America Minor Savings Account can be opened for any child younger than 18 years old. There’s a minimum deposit of $25, and this child saver can be opened at any branch.
There’s also no monthly fee and no minimum daily balance. On the downside… The APY on this account is only 0.03% – 0.06%, which isn’t overly enticing.
Children’s savings accounts help our children learn a vital life skill, so what are you waiting for?
Open up your child’s first savings account today!
Final Thoughts On Teaching Kids The Importance Of Saving Money
Whichever children’s savings account you choose, the important thing is that you’re creating a little child saver who understands the importance of saving money.
Learning to make and keep a budget along with saving for a raining day are life skills every child should be taught.
Teaching children about the importance of saving money starts at home.
Have you taught your kids the importance of saving money? Do you have a kid’s savings account for your children? I will love it if you comment below any tips you have!