Raising Savvy Savers

According to Bankrate, almost 3 in 10 Americans have no savings set aside to cover emergency expenses. Teaching your child about money and helping them establish good savings and healthy spending habits is critical. Also, in doing so, you are setting them up for success later in life.

Here are 5 tips for raising savvy savers:

1. Use a Clear Jar to Save – especially for younger children, putting their money in something where they can watch it grow, will keep them interested.
2. Show your youngster that stuff costs money – while shopping at the store show your kids that this gallon of milk costs $3.50.
3. Pay commissions, not allowances – Money is earned, not given. Instead of giving them money every week or month, ask your child to do chores and if they complete them, they are paid. This also will help build a good work ethic.
4. Share your savings goals and help your child set them too. Set realistic goals yourself and ask your child to as well. Once those goals are reached, celebrate with your saver(s) by watching a special movie or making their favorite dinner or dessert.  It's important to set the example.
5. Discuss Wants Vs. Needs – Food, clothing, and electricity are all needs and we should always make sure we have the money to pay for those. Toys, movies, games, etc. are all wants, which we can live without if we do not have the money to pay for them.

Our Thumbuddy Club helps teach kids the value of saving money by rewarding them when they deposit money into their savings account. It's smart and fun for them!

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