by Kinsey Love, marketing manager, Lewiston State Bank
We 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
budget.
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.
