Three tips to encourage successful saving in youth

Introducing finances at a young age can create healthy habits for a child’s future savings. According to a study done at Cambridge University, many core values develop in children before the age of 10. So the sooner these financial conversations begin, the better.

But first, why is saving from a young age important? Saving is a future-orientated behavior – choose to not spend your money now, to have the money in the future. It teaches kids to consider their values, and understand their needs and wants.

By allowing kids to have their own savings, it teaches them to think differently – from I need it now to I want it later.

It can be easier than you think to talk about saving with your kids and grandkids. Use these three helpful tips to ease your way into the conversation.

1. Use a visual aid: Visual aids, like a piggy bank or a save, share, spend bank for older kids, enhance the learning process for youth. Visual aids are memorable and can serve as excellent examples that kids can tie to an idea or process.
2. Create a timeline: Since visual aids are a helpful way to communicate with kids, a timeline can also illustrate the reasoning behind saving money. It can show how money can grow over time through saving. A personal savings timeline is a great way to lead by example and can emphasize family values. Try bringing two financial timelines, one for your child and one for you, that can be created together with crayons or markers. You’ll be able to support each other in your savings goals and model accountability.
3. Speak positively about finances: Another great way to help your kids and grandkids save is to emphasize positivity around saving. Speak positively about the topic of savings, kids will feel encouraged and create a healthy mindset about savings.

If you want to open a savings account for your kid or grandkid, a great way to encourage healthy saving and positivity around finances is to participate in Youth Savings Week. This event is designed to spark initiative in children to start saving early, while teaching them the advantage of saving money for short and long-term goals.

We asked, and young kids are grasping the right idea about saving money:

• “I never know when I need it,” says a young girl who participated in Youth Savings Week last year.
• “It’s important to save money for the future.”
• “It’s actually a good thing to save your money so you can get what you want with your own money,” says another.

Kids under the age of 18 are understanding the importance of saving, which is preparing them for future success. To learn more about Youth Savings Week, visit everence.com/youth-savings-week.