Savings Tips for Kids & Young Adults
April is Youth Savings Month, so we are here to offer some tips on how to get your kids to begin saving at a young age. Children and young adults can be reluctant to save their small allowance, since it may be their only source of income for their age. But teaching them some simple and easy tips for saving will help them get into the habit to become a more successful saver as an adult.
Use only real money. Using paper or coin currency will help savings become more tangible. If your child has earned $5 in their allowance, and they want to purchase a toy that costs $3.75, suggest that they save the change in their piggy bank. Better yet, get your child in the habit of automatically saving a portion of their allowance before they are allowed to spend it.
Put money in the bank instead of their wallet. It takes more work and thought to get money out of the bank. Through this method, it allows them to think things through before spending their money on impulse or frivolously.
Wait at least a week before making a major purchase. Impulse buying is a mental battle between push and pull. Advise your kids or young adults that they should wait another week or so before finalizing a purchase that’s larger than normal. The waiting period will offer them a moment to fully understand if it’s a necessity versus a want.
Set a percentage of their money that they are allowed to spend. Say they decide to save 50% of all money they get, that means they can spend 50% of it. Make sure they follow through with that, and even offer an incentive if they reach their savings goal. For instance, if your child says they want to save up $100, offer to match that if they do so in a certain timeframe.
If you’re not sure how to start your child’s savings, contact an UNCLE representative to get started. Starting is easy with UNCLE’s Youth Savings Accounts, specifically designed to help children and young adults have a safe place to keep their money.
As a Youth Savings Month Promotion, UNCLE Credit Union is offering a $50 bonus for new Youth Savings Accounts opened before April 29th. To learn more, visit: www.unclecu.org/50-youth.