Piscataqua Savings Bank prides itself on being unlike any other bank. Since its inception in 1877, it has dedicated itself to building lasting relationships among the community, including ones with small children. This year, Piscataqua Savings celebrates the 25th anniversary of its Kids’ Bank, a place for children to learn about financial responsibility while getting a head start on a sound savings plan for the future.
Here are 8 great tips for money-savvy parents raising money-smart kids:
- Set the example of a responsible money manager by paying bills on time, being a conscientious spender and an active saver. Children tend to emulate their parents’ personal finance habits.
- Talk openly about money with your kids. 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 of saving and budgeting, and the consequences of not doing so.
- Open a savings account for your children and take them with you to make deposits, so they can learn how to be hands-on in their money management.
- Let friends and family know about your child’s savings goal. They’ll be more likely to give cash for special occasions, which means more trips to the bank.
- Provide opportunities for your children to earn money to deposit into their account. Attaining financial goals is more meaningful when children work towards them.
- Engage your community. Many schools, banks and community organizations share your commitment to creating a money-savvy generation. Engage a coalition of support to provide youth with the education they need to succeed.
- Kids who save are more likely to go to college and graduate. With as little as $500 in college savings, children from families with modest means are 3 times more likely to enroll in college and 4 times more likely to graduate than those without college savings. Children with a savings account also have lower stress and a greater sense of hope for the future, according to the SEED Initiative. *
Teaching your child to be a financially responsible young person can be a very gratifying experience. Help them create a savings plan today — it’s an investment that will pay off down the road.
*The Savings for Education, Entrepreneurship and Downpayment Initiative.( SEED) is an integrated, multifaceted effort, which develops, tests, informs, and promotes matched savings accounts and financial education for children and youth.
The only mutual bank based in Portsmouth today, Piscataqua Savings Bank is dedicated to serving local individuals and families and has been a cornerstone of the Portsmouth community since 1877. This year marks the 25th anniversary of its Kids’ Bank, a place for children to learn about financial responsibility while getting a head start on a sound savings plan for the future. Visit www.piscataqua.com for more information.
Rick Wallis, President/CEO
Piscataqua Savings Bank