Getting Your Kids to Save

Get Your Kids to Save With These Three Easy Steps

Kids & Piggy Bank

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.

*All deposit products offered through E-LOAN, Inc. (E-LOAN) will be opened through Banco Popular North America (BPNA), a FDIC-member institution and a New York state chartered bank insured by the FDIC that is the direct parent company of E-LOAN (i.e. E-LOAN is a wholly-owned subsidiary of BPNA). Processing services are provided by BPNA. All deposits with BPNA are insured for the maximum amount allowed by law, and all balances on deposit with BPNA (whether directly or through E-LOAN) would be combined for purposes of determining FDIC coverage eligibility. Beginning January 1, 2013, all of a depositor’s accounts at an insured depository institution, including all noninterest-bearing transaction accounts, will be insured by the FDIC up to the standard maximum deposit insurance amount ($250,000), for each deposit insurance ownership category. For more information about FDIC insurance coverage of noninterest-bearing transaction accounts, visit http://www.fdic.gov/deposit/deposits/unlimited/expiration.html. Please consult with your attorney, financial consultant/planner, accountant, and/or tax advisor for advice concerning your particular circumstances. The information contained herein is for general informational and educational purposes only and should not be construed as professional, tax, financial or legal advice or a legal opinion on specific facts or circumstances. The information or opinions contained herein should not be construed by any consumer and/or prospective client as an offer to sell or the solicitation of an offer to buy any particular product or service.