As a parent, you instill in your children important values, such as respect, honesty, and kindness. Is financial literacy on the list?
One of the best ways to ensure your children have the best opportunities in life is by being financially stable. And the easiest way to start is by talking about money and positive savings behaviors early.
Thereโs an array of lessons to instill in youth to help them grow into financially confident adults, including:
Thinking like a saver from a young age: Your child may not be able to walk or talk yet, but they should have a savings account. Deposits can come from monetary gifts from birthdays, holidays, and other life events. Think about how much a savings account can grow in 18 years! This is great savings towards a car, college, or a wedding, for example, which will help keep you out of debt.
Saving by example: Good or bad, money-handling habits are often learned from parents, intentional or not. Donโt let you child learn that frivolous spending is normal. When making a savings deposit, bring them along with you to show them that it should be a routine activity. This will hold yourself accountable, too!
Teach financial literacy: When theyโre old enough to understand concepts, teach your child about the building blocks of financial stability. Start with the purpose of a savings versus checking account and how to fill out a deposit ticket, then move on to the concept of interest and the benefit of utilizing direct deposit.
Set savings goals as a family: Whether it is individual goals or savings goals for the whole family, make sure theyโre known so you can help each other meet them and stay motivated. Hereโs some questions to ask when defining these goals:
- How much will you try to save each week?
- How long will it take you to save for your goal?
- What are changes we could make as a family to help us achieve our goals?
Itโs never too early to start saving. Penn Community Bank offers a junior savings account built just for children and young adults. Check out or website or visit a branch to learn more.
This blog is part of Penn Community Bankโs celebration of America Saves Week – an annual celebration and call to action for everyday Americans to commit to saving successfully. Together with thousands of participating financial institutions and community organizations, we encourage local communities to do a wellness check on their finances and make a plan to achieve better financial stability.
