Teaching Children The Savings Habit
In today’s world it is difficult to distinguish between what a child ‘needs’ and a child ‘wants’. Children and teenagers can be quite demanding and assume they ‘must have’ the latest fad because all their friends do or they have seen it on TV. At the same time, many children have access to more money than previous generations, which comes in the form of pocket money, gifts etc. The benefits of teaching your children about money early on will have advantages immediately and into the future.
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. Find out more about savings accounts for children by contacting Donegal Town Credit Union….
Helping Children Learn the Value of Money
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.
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.
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.
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. Enquire at Donegal Town Credit Union about opening a savings account for your child and let the good savings habits begin! Discover our range of savings accounts for members…