The good news is there are a few financial habits that help everyone save more. If your kids learn these habits early on, they'll end up with more money in their pockets throughout their lives.
Here are eight smart savings tips for your kids:
1. Make a savings goal
Help your kids pick a realistic goal. You want them to set their sights high, but to be reasonable also. (After all, you may be bankrolling this project.) Tell them they can save $100 well before $1,000. Making small strides will end up taking them farther than they think.
2. Open a new savings account
A new, separate account is the best way to support a specific savings plan, especially when it's for a child. Once you set it up for them, go over the benefits of having a savings account. Your kids will earn interest—which may be more exciting to them than you realize—their savings will be insured, and you can both use an app to check how much is in the account.
3. Work for it
To make a significant impact on their savings, encourage your kids to work toward their goal. For teenagers, this might mean working for an employer like a local business. For younger kids, it might mean earning an allowance by doing chores. This way, they can control how much they make and how much they save.
4. Save those gift checks
A great way to save comes from the checks that kids receive for their birthdays and holidays. Tell them to deposit the money instead of spending it on a whim. If they tuck that money away into their savings account, it'll get them that much closer to their goal.
5. Be creative
Ask your kids if there are other ways they can save. Can they spend a little less on clothes, restaurants and entertainment like games, movies and music? Do they have old clothes or sports equipment that you can sell online? Help them be on the lookout for new ways to put more money in the bank.
6. Keep saved money in the bank
Once they've reached their savings goal, tell them they've got a new choice to make. They can use the money right away, or they can keep saving for a little while. Think about it this way: If they wait until they have $200 to spend $100, they'll keep at least $100 in the bank no matter what. It's their choice between having $100 or $0 at the end of the day. Let them decide and learn from their choice.
7. Remember the good and bad decisions
Ask them to look back at the choices they made as they saved. Which ones helped them more? Which ones ended up not helping at all? Did they have to spend money on any surprises along the way? Tell them that they can make up their minds about how they'd do things differently next time.
8. Set a new goal
Now that they've met their goal, help them choose a new one and follow these steps again. It's a habit that has to be learned over time. So keep reminding them and encouraging them to save every day.
The information provided is not intended to be legal, tax, or financial advice. BB&T hopes you find this information useful but we cannot guarantee that it is accurate, up to date, or appropriate for your situation. Financial calculators are provided to assist you in estimating the approximate costs associated with any bank activity. Your actual costs may vary. You should consult with a qualified attorney or financial advisor to understand how the law applies to your particular circumstances or for financial information specific to your personal or business situation.
Branch Banking and Trust Company, Member FDIC.
New York City residents: Translation or other language access services may be available. When calling our office regarding collection activity, if you speak a language other than English and need verbal translation services, be sure to inform the representative. A description and translation of commonly-used debt collection terms is available in multiple languages at www.nyc.gov/dca.
Branch Banking and Trust Company is now Truist Bank. Learn more.
BB&T and SunTrust have merged to become Truist. Both institutions will continue to offer independent product lines for a period of time. This may include differing underwriting guidelines, product features, terms, fees and pricing. Our friendly teammates at your local SunTrust branches will be happy to walk you through their respective products. You can also learn more by contacting them at 800-SUNTRUST or SunTrust.com.