Teaching Children to Save
"Children have never been very good at listening to their elders, but they have never failed to imitate them."
— James Arthur Baldwin. American novelist & writer
It's never too early to start saving for the future, and there are a number of ways to pass good savings habits to the next generation.
Tip #1: Talk openly about money with your kids.
Explain to your children that there are only three things you can do with money…earn, spend, and save…and all three are equally important!
Tip #2: Teach them the principle of earning their money.
It will instill in them a sense of the value of a dollar and help them set their priorities.
Tip #3: Teach them to spend wisely.
You know what that means…compare products for value and quality, get the best price, seek advice when needed, and above all, buy only when you don't have to compromise on whatever goal was in mind when you decided to spend the money!
Tip #4: Teach them to save.
Allowance money for household chores, gift money from grandparents and other relatives, and earned money from babysitting, grass cutting or other chores done for others should have a portion set aside for savings. One of the best ways to incent them is to open a savings account here at Washington Financial Bank, where every month the ever-increasing savings balance can be viewed and celebrated.
Help your child grow up to be a disciplined spender and active saver. Children tend to emulate their parents' financial habits. By talking with your children about the importance of saving, setting a goal with them, setting the example with your own budget, and regularly going with them to make deposits into their savings account, you can help them develop good saving habits.
For their short-term goals such as a video game, you may consider opening a Minor Statement Savings account at Washington Financial. Our Minor Statement Savings account has no minimum balance requirement and funds can be withdrawn or deposited at any time. For a long-term goal such as college, you may want to consider speaking with our Investments team about 529 College Savings Plans. And for everything in-between, you can visit any of our banking offices where you will be welcomed with a friendly greeting and professional solutions!