April is Chartway Youth Savings Month, and during this time, we want to help young people feel empowered to make financially sound decisions that will benefit them in the future. To children and teenagers, saving for retirement and emergencies can sound boring and useless, so we’ve assembled this guide to help your child get excited about the fun and different ways to save for a financially healthy and stable future. Here are four tips to help you set your child on the right path.
1 - Have an Open Conversation
Over six in ten Americans (62%) don’t talk about money, which unfortunately includes discussions with family members, according to research by Empower. Opening the lines of communication with your children and keeping them open can help set them up for a prosperous financial future. The older your child is, the quicker they can grasp more complex financial concepts, so they should be involved in discussions about budgeting, saving, and investing. Parents are encouraged to create a safe environment where their children can weigh in on everyday money choices and debate the pros and cons of a big purchase. As a parent or guardian, you can help any child brainstorm ways they can earn and save for a coveted item. If you don’t know where to start, try these relevant conversation starters during dinner. Healthy attitudes toward money begin at home and with you.
2 - Allow Your Children to Make Purchases
Purchasing something is the most direct way to understand how money works. Therefore, it’s an excellent opportunity for your children to learn and understand the value of money. The next time you make a purchase, include your child and walk them through the exchange step-by-step. If access to a supermarket or convenience store is limited, you can virtually show the exchange of goods or services by including your children in your next online grocery order. This lesson about money is a great way to teach and show them how much each item costs and how your total due increases when you add another item.
Another way to continue the conversation and feed them knowledge is to gamify the learning experience. ZoGO is a terrific financial education app recommended for children 12 years of age and older to help them learn about money while making money simultaneously! Download the app to your device and use CHARTWAY as your access code to get started. ZoGO can be a supplement to reinforce the cash conversations with your children. And for children younger than 12, you can help implement fun activities to inspire them to earn money beyond traditional chores. Everyone deserves to be recognized and celebrated in big and small ways for their progress — those moments of recognition can spark excitement and inspire the pursuit of greater aspirations. Monetary rewards for good grades, community engagement events, and helping the neighborhood can teach your child that hard work and consistency have personal and financial benefits.
Additionally, Chartway offers a student rewards program for children from early savers (ages 0-5) to teens (Ages 13+). Early savers receive a coloring page, crayons, and a Chartway piggy bank when their parent opens a savings account on their behalf. When your child brings in a full Chartway piggy bank, we'll match two deposits per year — up to $5 each! Children ages 6 to 12 can receive $2 for every A and $1 for every B when they bring in their report card. Teens can be rewarded for As and Bs on their report card and get a free Chartway Visa Debit Card. Saving early in life can be rewarding, and teaching your children about practical money skills can be both fun and educational.
3 - Encourage Chores & Part-Time Work
Children understand the value of money best when they earn their own and earning can start at a young age. Some parents choose to tie completing chores like making the bed doing the dishes and taking out the trash, to earning allowance. Parents can also encourage their teenaged children to find part-time jobs or paid internships after school and during summer break. The experience provides them with transferable skills they can develop and carry into the future while simultaneously developing the concept of earning and managing their money week to week. As a parent, you should emphasize the importance of saving a portion allowance or summer job income for future goals. Also, as a parent, you can encourage your child to allow you to open a certificate for them using their earnings to help convey the power of investments, the concept of interest, and the reward of a return. The benefits your child will experience in the future are worth more than the coins they’ll have to sacrifice in the present.
4 - Help Your Child Open Their Very First Savings & Checking Account
When those summer job paychecks start rolling in, urge your child to protect their hard-earned dollars with a checking account, which gives them a place to store extra cash. Additionally, a checking account, like our Chartway Student Checking, offers the convenience of direct deposit without waiting in a traditional line to cash a payday check.
Chartway Student Checking is the hassle-free, fee-free, no minimum balance checking account that gives teen and young adult members, ages 13 to 21, the freedom and flexibility to learn how to successfully manage their spending and provides parents with reassurance and built in control to oversee good habits for those under 18.
With our Checking account Chartway also offers Simple Savings. When you make a purchase using your Chartway debit card, your purchase amount rounds up to the nearest dollar and your spare change automatically goes directly into your savings account. Saving is that simple! It’s a great way to start saving towards a car, a trip, college or something special. The more you use your debit card, the more you save! If you want to see your savings grow faster, you can double or triple your round up amount. When you spend wisely with your debit card you’ll see your savings grow.
At Chartway, we believe that our youth are the future, and we want them to be financially, empowered, prepared and confident with the decisions they make regarding earning and spending money. Practical tips like these can help you set your young ones up for success and financial freedom. We encourage you to stop by one of our branches — with your children — and connect with a team member to learn more about simple savings, student checking, and certificate options as well as investment options for building your finances.