4 minute read
FINANCIALLY SPEAKING
{ SHIFT+CONTROL }{ A SPECIAL TRIBUTE }{ WOMEN IN FINANCE } YOU ARE ENOUGH. SAVING FOR THE CHILDREN IN YOUR LIFE
BY NICOLE HEROUX WILLIAMS I PHOTOS BY NSP STUDIO BY DAWN KELLOGG
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It’s no secret that financial skills are important in life and getting kids started early with a savings account and good fiscal habits can make a big different for their future.
When I was a kid, I had a blue passbook from a savings account that my parents had opened for me. That little blue book was mine and I loved going into the bank, depositing money, and seeing the number grow. It was into that same account that my birthday, babysitting, and graduation money was deposited, as well as paychecks from my first jobs.
I set up a checking account when I went first went away to college, but it was that early savings account that was the foundation for my financial future. I held that account until well into my 20s when I moved to another part of the country for grad school. The days of the passbook are long gone, but for kids, there is still that thrill when you log onto your financial institution’s website or app, and see how your money has grown, or how it has been used.
Everyone wants the best for their children, and one of the best ways to set them up on the road to fiscal responsibility is by opening a savings account for them. New York State does not allow minors to open their own accounts; however, a parent or guardian may open an account for the child. Consider putting both names on the account. Piggy banks are cute, and kids don’t usually have piles of cash stowed away, but by opening an account for them, you are investing in their financial education and future - and you don’t even have to have a huge balance on the account. You’re not necessarily trying to turn your child into a financial planner but building savings habits can help prepare them for adulthood.
A recent study shows that children
from low- or moderate-income families who have a savings account for college, are more likely to go to college, and to graduate from college – even if the account is under $1,000.
Some people set up accounts for their children right after birth – which is a smart move! People receive gifts of money at the birth of a new child and what better way to begin a new life then setting up a savings account for their future? When my first nephew was born, I set up an account for him and encouraged my fellow godparents to deposit gifts into that account. 20 birthdays, holidays, and special occasions later, and that account has grown so considerably, that my nephew was able to purchase his first car using money from that account. More and more schools are working with financial institutions to provide financial education to kids of all ages, proving it’s never too early to begin teaching your kids about money management at home.
Here are some reasons to open a savings account for your child:
It is literally one of the best teaching tools about money out there! The Summit, for example has a quarterly newsletter created just for Safari Club members (ages 5-8) with games and crafts designed to educate kids about money.
It helps get kids in the habit of saving money early – it’s oh, so tempting to spend money on the latest online video game or the coolest toy but learning to save is central to financial security.
It helps you to encourage them to save a portion of their earnings early – you can not only teach your kids about the benefits of saving, but you can enhance it by matching or contributing regularly to their accounts as well.
Opening a savings account for a child is a great aid for parents in helping teach their children money management skills. Talking to children about money can sometimes be challenging. Surveys reveal that they are more comfortable talking about smoking, drugs, and bullying than about finances or investing. It gives kids spending options. College isn’t the only reason that kids might need money when they become young adults.
It’s a means to financial goals – most financial institutions have online tools designed to teach kids about money, such as blogs, newsletters, apps, etc. Dawn Kellogg is the Public Relations and Community Engagement Specialist at The Summit Federal Credit Union: www.summitfcu.org
