In a child’s world, money comes from Mum purse or Dad’s pocket. When they run out of money, they go to the magical machine where typing in a few numbers gets more money! Children need to understand that money is earned and you can only spend what you earn. It is important that children learn good saving habits and at Donegal Town Credit Union we have the perfect way for them to start. Children also need to learn how to make smart purchases and learn why they cannot immediately get everything they want. In the long term, developing good money management as children will lead to less debt and greater financial security in the future as adults.
Pocket money is a good way to help children learn to make their own decisions and live with them. It will help them to understand that money must be managed and when it’s gone, it’s gone! How much you decide to give will depend on age, maturity, responsibility and the family financial situation. By involving children in the family’s financial decisions (where applicable) i.e. saving for the summer holidays, they can gain the experience of saving and receiving the rewards at the end of the savings term.
Developing the Savings Habit
Saving is a habit, it is learned by doing. If a child can develop a savings habit at a young age, it will stay with them for life. Saving gives children a feeling of independence and a sense of responsibility. Having their own savings account helps children to learn how to manage their money. They key element is definitely not how much they save, but that they are developing the habit of saving on a regular basis. Children look to their parents and often develop their habits. If you are saving, they are more likely to save too. Another good way of encouraging a savings habit is by sharing stories of how you saved when you were their age, what you bought and how long it took to achieve the end goal!
How Donegal Town Credit Union Encourages Saving
Since their formation, Credit Unions have been encouraging children to save. We are about people not profit and want children to learn good financial habits that will lead to a secure and happy life in the future.
GR8 Savers Terms and Conditions
• You must hold a Junior Account with Donegal Town Credit Union.
• The minimum lodgement is €1.00
• You earn one stamp per lodgement.
• You can only earn one stamp per week (Monday – Saturday).
• The account holder must be present to earn the stamp.
• Donegal Town Credit Union reserves the right to withdraw the GR8 Savers Programme at any time.
• All rewards are subject to change