One of the best back-to-school lessons your child learns this year could be the importance of saving money. That’s because elementary-age kids who understand the benefits of saving early tend to be better prepared to make smart financial decisions as they grow older. Here are three fun ways to help them start:
- Open a youth savings account. Institutions such as Luso Federal Credit Union offer in-school banking services that let allow students to open an account with no minimum fee. When children have their own account, they can develop a sense of ownership and pride.
- Watch savings balances grow. When your child sees how dividends help the amount they save increase over time, they’re better able to understand the importance of starting to save money early. You can help your child see this growth by reviewing statements with them each month. For more up-to-date information, you could also regularly show them their savings account balance online.
- Offer a savings match. Another way to encourage your child to get in the habit of saving is to agree to match all or a portion of the amount they build up in their savings account.
One easy way to match the money is to set up a transfer from your checking account to your child’s savings.
If you don’t have an account with our Credit Union, please feel free to complete your account opening application online or visit one of our convenient branches listed on this newsletter.
By establishing a savings program, you can help your child learn the importance of saving early and watching their money grow. Not only can your child benefit from these key money lessons today, s/he will also benefit well into adulthood.
Margarette Burnette, NerdWallet
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