Why not get your kids into the savings habit?

Start them early…… the sooner you get children into good money habits the better!

The earlier we begin teaching the younger members of the family good money habits the better, and research shows that that children start forming their financial habits from as young an age as seven. Luckily, there are plenty of useful financial tools available to youngsters, complete with adult supervision, enabling parents and other carers to equip children with money skills.

Early saver accounts, prepaid debit cards and financial education apps are just some of the products on the market tailored to children and aimed at putting them on the path to healthy financial wellbeing by teaching them about budgeting and spending, and encouraging them to save. There are also plenty of simple tips to help kids form good money habits and here are just a few.

Visible saving incentives

We’ve probably all owned a piggy bank but research shows that not being able to see how savings are growing can be something of a disincentive to all but the most committed savers. If you’ve found your child’s interest in saving has waned, try using a transparent pot or jar instead, which allows young savers to see how their savings are building nicely for themselves.

Reward rather than hand out

There are some great ways of helping a child understand where money comes from, and the connection between work and pay. Putting these principles into practice with financial rewards for chores like cleaning their bedroom, taking out the recycling or washing the car is a great start.

Show and tell

If you’re paying a bill or renewing an insurance policy, why not let them sit in on the process and explain what you are doing and how to compare prices to get the best deal? They can also tag along when you are going to the supermarket or ordering groceries online so that together, you can decide which items and offers help to make your money go further. Lastly, maybe include them when you are buying their clothes, toys and things for school so they can see that 'money does not grow on tress' but instead get into the habit of spending within your means. Regardless of your age that's a great life lesson.

Saving for treats

Getting children to understand the difference between need and want is a great money lesson, whether that’s waiting for birthday or Christmas money, or saving up pocket money over time. Patience and discipline are great attributes for life and finally buying something because you've saved hard for it means its treasured and appreciated more.

How can we help?

As the largest credit-union in the South-West we offer a range of secure and free savings accounts which enable savers, however old or young, to save at their own pace. Our Junior Savings accounts is open to anyone up to and including 15 year's of age so if you are looking for a great savings account that pays an annual dividend based on our performance, but which also supports the local community, we can help.

See our Junior Savings page for more information. We're looking forward to helping younger members of the family save now for their grown-up tomorrow.