Columbus Moms Blog has partnered with Credit Union of Ohio to bring you our best money saving tips for kids, however, all opinions are my own.
So, I’m pretty good with money. I’m a saver and I always have been. It’s all thanks to my parents and how they educated me about money.
When I was little, my parents always talked to me about money. We talked about things like how and why to save and how to use credit wisely. It’s something we discussed openly and often. The conversations evolved as I got older to topics like getting a 401K or saving up for rent or a car purchase.
Have You Opened a Savings Account For Your Child?
Some of you might be saying, “Of course I did” and some of you might be thinking, “What? I need to open a savings account for my toddler?!”
Even small children can gain benefits from opening a savings account. When I was little, my parents encouraged me to save my money. I saved anything from birthday money to coins I found on the ground. The deal was I got to open a savings account once I had $100. I was so excited and saved as fast as I could. I still remember to this day walking into the bank with my precious $100 and being so proud when I handed it over to open a brand new account – in my name! While it might seem dull to an adult, opening an account can be a real joy for a child. When you make it fun, your child will be excited to save!
Let’s Talk Saving
Now that my daughter is almost 4, she is getting to the age where she is starting to understand the idea of money, so I have started discussing it with her. It’s ok to keep it simple with little ones. The fact that you need money to purchase something you want or need is news to them! As your children grow, you will be able to expand on your discussions about saving money.
As parents, my husband and I opened an account for my daughter when she was born. We have been funding it with all of the birthday and Christmas money she receives. This is intended to be a college fund for her, and we will encourage her to add it when she is a little older.
So, how can you encourage even really little kids to save money? Well, my daughter loves picking up rocks or dandelions off the ground for her “collection”, so I figured I might as well encourage her to collect something valuable. Now, anytime she sees a coin on the sidewalk (or on the floor or between the couch cushions!) she collects it in a special little bank in her room. It’s a fun way for her to get involved in saving money even at a young age.
Money Saving Tips For Kids From The Experts At Credit Union Of Ohio
The number of savings accounts opened for children under the age of 18 is surprisingly low, but don’t let that stop you from being one of the smart parents!
At Credit Union of Ohio, we know that creating simple savings goals at a young age can help lead to financially responsible habits in adulthood. Along the way, you’ll help build a significant nest egg for your children’s future, too. Here are some tips from our youth financial counselor.
- Motivate your child to fill up their piggy bank and once full come to Credit Union of Ohio to open a savings account.
- Set up a 529 plan for your child’s education so that money can grow tax-free. Use any money they receive for birthdays, Christmas and other celebrations to fund the account while they are young.
- Help your children get an age-appropriate job, such as babysitting, lawn mowing or pet sitting and encourage them to put at least half the money earned into their savings account.
- Involve your children in the shopping process, whether shopping for school, clothing or groceries, to help improve their spending judgment.
To learn more about Credit Union of Ohio’s youth accounts or to set up a free financial counseling session, visit their website or call (614) 487-6650.
We would love to hear from you. Please share your best tips to help your kids save money in the comments below.