by Kinsey Love, marketing manager, Lewiston State Bank

Smart SavingsWe live in a world of instant gratification.
We digest information, pay bills, shop and share photos all at the click of a button. At times, it can be hard to teach our children the value of delayed gratification. Learning to save for a rainy day is a vital, yet simple, lesson our children need to learn.

According to the American Bankers Association Education Foundation, kids who save reap benefits in a number of ways:

  • Kids who save are more likely to go to college.
  • Teaching kids to save teaches self control.
  • Children who save have a greater sense of hope for the future.
  • Savers are more financially literate.

Children are capable of learning about saving at all stages of life. Here are a few suggestions from Lewiston State Bank and the American Bankers Association to help your children learn about saving.

Preschool – 2nd Grade

  • Ask relatives to contribute to a college fund instead of
    giving toys.
  • Start saving early by opening a college savings account or
    exploring 529 college savings plan options.

3rd – 5th Grade

  • Take your kids to the bank to gain an understanding of
    depositing money and making basic transactions.
  • Use weekly or monthly allowances to teach kids about
    saving and spending money.
  • Create a saving jar, spending jar, sharing jar and investing jar
    to show the different ways that money can be organized
    and used.

6th – 8th Grade

  • Help your kids find simple jobs, such as babysitting or
    car washing, to start earning and saving money.
  • Include your children when planning finances that
    involve them and the family so they can learn how to
    make sound financial decisions.
  • Take your kids to the grocery store. Have them help
    make decisions about what to buy based on your

9th – 10th Grade

  • When starting a first job, help your child create a savings
    and spending plan as well as a budget so they learn smart
    strategies for using their money in the future.
  • Research scholarships and other college funding resources
    now to cover the rising costs of tuition.
  • There are a lot of expenses when your child goes off
    to school. Set a goal and start saving together for
    housing, travel and other costs.

11th – 12th Grade

  • Talk to your teen about credit and avoiding identity theft.
  • They should understand the implications of accumulating
    debt and aim to pay off their monthly balance in full.
  • Help your teen learn about scholarships, investments and
    funding plans now so they’re better prepared to make deci-
    sions on what college, trade school or university to attend.
  • Ask relatives and friends to contribute to a savings fund as a
    graduation gift.

Saving money for the future is a fundamental principle that children need to learn. With coaching and encouragement from their parents, children can successfully navigate the financial future ahead of them.