It’s Never Too Early To Start Teaching Good Savings Habits
The Benefits of Establishing Healthy Savings Habits at a Young Age
Today’s youth have so much on their minds every day form sports, to homework, to thinking about what they want to be when they grow up. Unfortunately, future financial stability is often forgotten with all the running around in early life. In the blink of an eye, your chubby cheek little babies will grow up, go to school, start working, buy their first car, settle down into a nice home and possibly start a family of their own. One way we can help our children succeed as they grow is to establish healthy savings habits at a young age. Humans are creatures of habit, so establishing healthy savings early does more than just help increase financial capabilities, but establish both short and long term benefits throughout life. Here are a few tips on establishing healthy savings habits at a young age.
Learn to Plan Ahead
Whether it’s having clean clothes for work, or prepping for an unexpected emergency or natural disaster, planning ahead is an essential part of life that is sometimes done without any thought. Why not make saving money one of those effortless ways to plan ahead? Establishing a youth savings account, and having your child actively and consistently deposit the money into the account, can help include saving money into the idea of planning ahead and being prepared. Establishing this newfound process of thinking ahead at a young age will help your child set and understand the path to achieving realistic goals.
Stay Focused on Goals
We all understand that setting goals is important, but we don’t often realize how important it is to establish them at a young age and continue to monitor and tweak those goals as we move through life. Setting goals helps trigger new behaviors, helps guide your focus, and helps you sustain that momentum in life. Establishing goals, either financially or establishing a goal that requires a solid financial foundation, will promote a sense of financial control and self-mastery. Not only do you get the feeling of fulfillment from achieving your goal, but the time you spend reaching that goal can be just as exciting. Having your child watch the number in their savings account grow over time can be just as exciting and rewarding!
Learn Basic Math Skills
We all have been sitting in math class thinking “when will I ever use this in life?” Well, think about all of the math involved in a savings account. It may seem like simple math, but this foundation is incredibly useful throughout our lives. Think about the simple addition, subtraction, and compound interest. These are all concepts that we deal with in everyday life, from savings and checking accounts, to loans and mortgages. The younger we are able to master these concepts, the better mathematic and financial foundation your child will have to build on and learn about more complex ideas and concepts more easily.
Learn About Saving & Financial Security
Saving money is great when it comes to reaching goals, teaching lifelong skills, and learning to plan ahead. What may be the most important thing that saving at a young age teaches is the importance of saving for financial security. It may seem like a scary thought, but we never what can happen when we wake up and carry out our daily lives. Being prepared and secure to handle most of life’s unexpected events, from a car accident to a global pandemic, is something that should be on everyone’s mind. Preparing your child to deal with an unforeseen disaster without worry of financial strain can help decrease stress and allow them to focus on more important issues.
GNCU’s Minor Share Savings account is designed to put these healthy savings habits into practice at a young age. We are proud to offer a free savings account for members ages 17 and younger, with the only requirement being a minimum balance of only $5. Our Youth savings accounts also offer generous dividends so young savers can watch their money grow. Learn more about our Minor Shares Savings account, plus view a wide variety of financial education resources for youth.