First Commonwealth Bank is proud to support the Teach Children to Save initiative. During the next few weeks our employees will be out in force teaching children of all ages the importance of saving through interactive and fun activities. Savings should be fun. Below are some easy and fun ideas to turn the youth in your life into savers.
Where to Begin?
The best way to reach your savings goal is to start with a budget. A budget helps you keep track of the money you have coming in – your allowance or Birthday money – and the money you have going out, including spending, savings and possibly donating. A good way to learn budgeting is to divide your money into four clears jars labeled: Sharing, Spending, Short-term Savings and Long-term Savings. Below are some guidelines to help you decide how much to put in each jar.
- Sharing Jar: Deposit 10% of your income, or $1 for every $10. Are you concerned about helping children or animals, protecting the environment or supporting a local food bank? Choose a cause that you’re interested in and donate regularly. You’ll feel good and the charity will benefit from your generosity.
- Spending Jar: deposit 30% of your income, or $3 for every $10. This money can be used at any time for small purchases, like a new video game or some iTune credits. Ask your parents for guidelines on how you can spend this money, and then make your own decisions!
- Short-term Saving Jar: Deposit 30% of your income, or $3 for every $10. You may need to save several monthly for lagers purchases, such as a new gaming system or an iPod. This jar will help you save for some cool stuff!
- Long-term Saving Jar: Deposit 30% of your income of $3 for every $10. This is where you’ll save for the future. Someday you’ll want to go to college or buy a car. These expenses require a lot of planning and saving.
Once your money has started to add up, ask your parent or a trusted adult to help you open a savings account. The bank will make sure that your money is safe, and they’ll even pay you while it’s there.
Talking "Money" with Children
Anytime is the right time to begin teaching children about money, and the American Bankers Association Education Foundation has tips that can help parents teach money at home.
- Talk openly about money with the children in your life. Communicate your values and experiences with money. Encourage them to ask you questions, and be prepared to answer them – even the tough ones.
- Explain the difference between needs and wants, the value in saving and budgeting and the consequences of not doing so.
- Set up a chore chart and give your children an allowance for completing their tasks. Require them to save at least a small portion each week. The three jar method, one for spending, one for savings and one for charitable contributions is a good way to impart a sense of responsibility.
- Open up a savings account for your children and take them with you to make deposits, so they can learn how to be hands-on with their money management.
- Be an example of a responsible money manager by paying bills on time, being a conscious spender and an active saver. Children tend to emulate their partners’ personal financial habits.
Make Savings a Family Affair
Whether you are planning an outing to the local amusement park or a once in a lifetime trip, set a savings goal to get every member of the family involved.
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Do You Want To Learn More?
Excited about the idea of saving? Who wouldn’t be! Our Financial Education Champions offer free financial education presentations and hands-on-workshops at schools, organizations, and businesses within your community. To inquire about the availability of individual or group sessions in your area, please contact our Financial Education Program Coordinator at firstname.lastname@example.org or 724.465.1984.
A Commitment to Financial Education
Financial Education is one of the ways First Commonwealth Bank delivers on its promise to be a responsible community bank, by putting customers and our communities first. We understand that we all need the guidance of a trusted financial institution when it comes to managing money and making healthy financial decisions.
About Teach Children to Save
For 17 years this program has partnered banks with students for lessons on the importance of saving. The program has reached more than 5 million students with savings education lesson. This year Teach Children to Save Day was celebrated on April 23, while bankers will give lessons throughout the year.