Getting Your Kids to Save
Get Your Kids to Save With These Three Easy Steps
Motivating most kids to clean their rooms or eat their vegetables is already a monumental accomplishment for most parents. But if you’re thinking about how to motivate them to save, E-LOAN has some simple tips to get that conversation going sooner than later. We know that progressing from a piggy bank to the “financial responsibility” talk can seem daunting, but teaching your kids healthy saving habits and early money management skills today will benefit them in the future.
Encourage your kids to save
Let’s talk incentives, because kids love to be rewarded for a job well done. You or your spouse may have a retirement plan at work and your company may offer matching contributions. Try incorporating a similar idea to your children’s saving plan. For every dollar he or she saves, contribute a dollar to help their personal fund steadily grow. If you provide an incentive or if you reward your children for establishing a savings goal and meeting it, that financial responsibility talk we mentioned before will be a win-win for you and your kids.
Open a savings account or CD for your kids
If their piggy bank is filled to the top, that’s a great opportunity for you to walk them through the initial deposit process. A savings account or certificate of deposit (CD) is a great way to teach your kids about long-term savings habits. They’ll enjoy a sense of responsibility and maturity when they see their own name attached to a personal bank account. Teach them how to watch their savings grow, talk to them about how interest works and encourage them to stick to their savings plan. Saving for a rainy day is a lesson that kids can grasp quickly and easily.
Set the example with a savings plan of your own
If you’re going to talk to your kids about the importance of saving and money management, use your own personal or family savings plan as an example. If you don’t have one, that’s okay. It’s never too late to start saving. Browse our Savings and CDs section today and find the savings account or CD that’s right for you. Savings and CD products are insured by the FDIC*, with no fees and an easy online process so you can start your savings plan right away.