Blog Details

News & Notes

Help Your Kids Save: 3 Effective tips for Raising Money-Smart Children

Feb 05, 2019

Savings for kidsWhen it comes to teaching kids about saving money, it helps to focus on one important concept: the future. Most children don’t have long-term plans for their cash. When they get money, they want to spend it all right away.

As parents, we know that’s a slippery slope. If you burn through your cash, you can’t cover unexpected costs, or pay for things you really want but can’t afford right now. So how do you get your kids to think about their “future money”?

1. Open a savings account with them

A savings account at Redwood Credit Union is a great way to illustrate the concept of a financial future. Let your children know that each time money comes in, they should save a portion.

Then, when they want to buy something that costs more than they have, they can withdraw. Be sure to open the account with your child to ease them into banking at an early age. 

2. Explain wants vs. needs

Wants are fun, but not necessary items such as toys and candy. They’re transitory and can deplete your money quickly if you’re not careful. Needs are ongoing expenses for things you can’t live without, like meals, clothing, and school supplies.

Obviously, you won’t ask your kids to buy the family’s groceries, but explaining wants vs. needs helps prepare them for the future.

3. Create a savings goal

Saving for the future is an abstract concept, so ask your children to pick concrete goals. Do they want a new bike? A video game? Have them pick something that requires dedicated saving, and remind them of their goal along the way. Maybe print an image of it as a visual cue to keep saving.

Saving money can be challenging for kids, but by focusing on the future, you’re helping them understand a very important financial concept that will pay dividends for the rest of their lives.  

To learn more about RCU’s savings programs for kids and teens, visit redwoodcu.org/youth.

CATEGORIES:
  • Blog
  • Financial Tips

Join RCU Today

RCU Logo

Welcome!

Get started now

Join Now OR Check Status

If you're interested in opening a Business, Trust, or other type of account, please visit your nearest branch.

Redwood Credit Union serves anyone living, working or owning a business in California’s Northern Bay Area, which includes the counties of Sonoma, Marin, Napa, Mendocino, Lake, San Francisco, Contra Costa and Solano. We look forward to serving you!

Choose Account Type

RCU Logo

Welcome!

Choose the Type of Account You Wish to Open

Personal  Youth

Already Started?

To complete your application, log in

If you're interested in opening a Business, Trust, or other type of account, please visit your nearest branch.

Login Help

Need Help Logging in to RCU Online?

If you’ve forgotten your RCU Online banking Username, password, or other login information, follow the directions below to get help now.

Sign up today for RCU Online banking.

enroll now

Still need help?

Contact our Member Service Center at 1 (800) 479-7928, Monday through Friday from 7am to 8pm or Saturday from 8am to 5pm PST.