How To Teach Teenagers To Save
Good saving habits begin early. With a first job or any allowances a teen and pre-teen may get they need an account to put their funds in to start saving for their future – one that they can use for college or for fun things like special gadgets or purchases. Starting saving early also lets interest compound, and it shows teens how fun saving can be.
What Are Some Ways to Start Saving?
If you’re wondering how to save money as a teen, these tips can help:
- Sign up for an account with low or no fees: The Get Real Checking is for anyone between the ages of 16 to 25 or a Get Real Savings Account is for anyone between the ages of 14 to 25 from Clinton Savings Bank (CSB), and may qualify for a competitive interest rate. The Get Real account fits into lifestyles that combine studying, social activities, and recent graduates embarking on their first job. The Scratch Kids Club Savings Account is an ideal way to save for anyone under 18, and it has no maintenance fees.
- Keep your savings visible: Use mobile banking tools or keep track of your savings on paper. Seeing your money grow month after month inspires you to keep putting money away.
- Know where your money is going: Having a budget lets you control impulse buys and ensures you have enough money each month for what you need without dipping into your savings. A budget also makes you stop and think about what you buy, so you put money into savings instead of purchases you may not care about. With a Get Real Checking Account and mobile banking from CSB you can access online budgeting tools to help.
- Make it automatic: If the money you earn from a part-time or after-school job goes into savings before you get a chance to spend it, you may not even think about it. Use mobile banking to set up transfers to your savings account so you can save with no effort needed.
What Age Should a Teen Start to Get Serious with It?
As soon as a teen has an allowance, is getting birthday or holiday money or has their first job, they have money coming in, and that means they can start putting even a little aside. This ensures teens get into the habit of not spending an entire windfall.
As soon as some money is coming in, it’s a good idea to set up savings accounts for teens and children. These accounts often have a lower minimum balance.
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Teaching Your Teenager to Save
How can parents help? If you have teens or kids, you can encourage them to set up teen bank accounts such as the Get Real Checking or Savings Account or Scratch Kids Club Savings Account from Clinton Savings Bank. For children under the age of 18, parental signatures are needed, so parental/guardian help is important.
Parents can also set a good example. Start talking about money early on and show good habits in action by having a budget and by making smart money decisions. Showing your kids, you are saving and spending wisely lets them see this is an important part of life.
Parents have a partner in CSB. Our accounts for teens and kids set savers up for success. Open an account from CSB or contact us to learn more about how we can help you save.
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