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Funding Your Future: Teaching kids how to save

Posted at 3:01 PM, Apr 12, 2017
and last updated 2017-04-12 17:01:20-04

April is National Credit Union Youth Month. In honor of this, we are going to talk about some of the ways that you can get your kids started down the path to a solid financial future. One of the most important aspects of anybody`s finances is saving, which can be difficult, even for adults. Starting now will help your child begin the foundation that they can build their financial future upon.

Make it Fun

Making smart money choices doesn`t need to be boring. If there`s something specific that your child wants to buy, create a savings chart. Every time they hit a savings milestone, there`s some sort of reward whether it`s a sticker or you`ll match their amount. If your child is new to saving, start with smaller, more attainable goals to prevent discouragement and then work your way up.

Start Budgeting Early

You can start teaching your child the important of budgeting early in their life. Obviously, this doesn`t mean sitting down with your 5-year-old and creating an excel sheet, but you can use more visual methods. A good way to represent budgeting is by getting three different jars labeled `savings,` `spending,` and `sharing.` Anytime they receive money, split it between these three categories.

Set a Good Example

If your kids see you saving money and making smart financial decisions, they are more likely to follow in your footsteps. For example, you could use the chart method when saving for something for the family, such as a vacation. This will allow your child to see that you also save for things you want. Bring them along with you to your financial institution so they can see how the process works first hand.

Open a Dollar Dog Account

A Dollar Dog account from Cyprus Credit Union is the perfect way to teach kids 12 and under the value of saving money. To open an account, just bring your child to any of our branches along with a $5 initial deposit. All children and grandchildren of our members are eligible for this type of account. Kids will get a free gift upon joining and every deposit of $10 or more will earn a dollar dog stamp. Once a child hits ten stamps, they can pick a gift card to some of their favorite stores.

During the month of April, bring your child into any Cyprus Credit Union location to open a Dollar Dog Account and we`ll make the first $5 deposit for them. You can also enter our coloring contest where there`s a $25 grand prize for 5 different age groups. The coloring page and entry form can be found HERE.

Learn more about how other kids save by reading Isaac Howell's story: