Holidays, with all the wish lists, shopping and gifts of money can be challenging for kids, who may not appreciate the importance of saving. It is important to teach children how and why they should save holiday their money rather than spending it all on the latest app, gadget, or toy.
One way for children to enjoy instant gratification while saving is to divide their holiday money in half. Invite them to spend on something from their wish list; the rest is for a special children’s savings account at your local bank. Help older children plan to save for something larger they’d like.
Make the banking experience fun. Schedule time to take your youngster to the bank. Use a passbook to track all deposits and interest credits so they can see the new balance and how much it grew. By having their own account, excitement can occur every month they receive a statement or special newsletter addressed to them.
Thinking about saving shouldn’t be restricted to the holiday season; make it a year-round activity. The more excitement there is around making a deposit, the more likely children are going to want to continue. If your bank offers prizes and special events for children, use these to keep kids engaged in the banking relationship and to help them enjoy some of the immediate rewards of that relationship.
The size of the deposit does not matter; what’s important is that your children learn how easy and rewarding it is to save, developing an important habit that will serve them for a lifetime.