Click on the yellow box above to access online banking.

Back to School - Back to Savings

Aug 31, 2011

School is back in session, but for those students who spent their summer working for some extra cash to put in their pockets, their greatest lessons could actually take place at home.  If your kids have started earning money, this is the perfect time to teach them financial lessons that will last a lifetime.

School is back in session, but for those students who spent their summer working for some extra cash to put in their pockets, their greatest lessons could actually take place at home.  If your kids have started earning money, this is the perfect time to teach them financial lessons that will last a lifetime.

Children learn very early how to spend money. It is up to us as parents to teach them how to save their money. The earlier you can teach a child about earning interest versus paying it, the better prepared they will be to manage their own money.

Here are some tips to help teach your child the value of saving money:

Take your children to the bank with you. Show them how transactions works, how money generates interest and how an ATM works and how online banking works. Open up a savings account for your child so they can see their money grow each month. If the habit of putting money into savings each time they are paid is established early then it will be more likely to become a lifelong way of managing money.

For teenagers: This is a good time to teach them to manage a checking account and ATM card. They can be taught to plan ahead for major expenses such as their first car or education. Teens can become more responsible for buying some of their own clothes and other necessities. It will help them appreciate how much things cost and perhaps take better care of their belongings. Our e-checking is a perfect first checking account with FREE ATMs use worldwide!

Payday. Take this time to discuss with your child how your pay is budgeted to pay for housing, food and clothing and how a portion of your pay is saved for future expenses such as college tuition or retirement. If your child is earning money consider asking them to put a portion of their paycheck in a savings account to save for something special. Explain the difference between needs and wants, the value in saving and budgeting and the consequences of not doing so.

Paying bills. Use this time to teach your children how to balance a checkbook. Explain to them the many ways that bills can be paid – through the computer using online banking, over the phone, by check or electronic check, even using a mobile phone. Discuss how each method of payment takes the money out of your account and the importance of balancing. Be sure to cover late penalties and overdrafts and the importance of paying bills on time.

Use of credit. Explain to them about using credit cards. Teach them that using credit cards is actually a loan that needs to be repaid. Share how each month a credit card statement comes in the mail with a bill. Take this time to teach them the difference between a credit card and debit card.

No matter the age of your children, talk openly about money with your kids. Communicate your values and experiences with money. Encourage them to ask your questions, and be prepared to answer them - even the tough ones!