April 27th is National Teach Children to Save Day
Take the time to talk to your child about the importance of savings and assist them in developing lifelong skills that will establish a healthy financial future.
Encourage your child to start saving now, regardless of their age. Partner with your child to find a local financial institution that is youth friendly. Be sure to go over with your child any fees, especially if they will have access to a debit card, interest rates and bank programs.
Help them understand the role of banks and how interest works. Interest is really free money. Saving $60 per month for 40 years at 4% can result in earning $42,414 in interest. Therefore, the initial investment of $28,800 becomes $71,214. Now, there's motivation to save regularly!
Consider becoming a co-signor on your child's account so you can monitor the savings and spending habits of your youth. Set aside time each month to go over the transactions so they understand the importance of balancing an account. Encourage them to set savings goals and use thoughtful spending practices. Attend financial workshops during MoneySmart Week and role model the importance of financial literacy. With your assistance, your child can be well on the road to a strong fiscal future.
Dianna Morrison, CSW, CPFE