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When most people come across the word “literacy,” they immediately think about it in terms of the ability to read and write. After all, that is the definition of the word. The ability to read, write, and comprehend subject matter is crucial in one’s mission to achieve success—ultimately becoming the foundation on which lifelong learning is established and sustained.
However, “literacy” has a secondary meaning. It also can indicate competence or knowledge in a specified area. When it comes to the various skills one can learn in life, few are more important than learning and understanding basic personal finances. That is why National Financial Literacy Month was established and is celebrated each April.
Last month, Maine credit unions were promoting the theme, “A Sea of Savings,” because when kids learn about the importance of saving money for the future, they are laying the foundation for financial success! Here are some of the tips shared last month:
Help Your Children Set Savings Goals
Children, just like adults, will be much more motivated to save their money if they have a specific goal in mind. Help them set their sights on something to save up for, remind them of their goal whenever they get an inclination to spend, and watch them as they experience the thrill of achieving an accomplishment!
Open a Youth Savings Account at Your Local Credit Union
With lower fees and higher savings rates, a youth savings account at your credit union can help kids lay the foundation for future financial success.
Use a Clear Jar for Saving Money at Home
If you’re trying to communicate the importance of saving money at home, consider using a clear jar. While a piggy bank is a great idea, it doesn’t give kids a visual. When using a clear jar, they can see their money grow over time. Tell your children, “Once the money reaches the top, you can use that money to buy something you want.” They will be able to monitor their progress, experience delayed gratification, and learn the importance of saving.
Play Money Management Games During CU Youth Month
Board games like Monopoly or the Game of Life encourage kids to strategize—teaching them the importance of budgeting, saving, and planning for the future—all while masquerading as fun games.
Consider Matching Your Child’s Savings as an Incentive
One of the reasons people save in their employer’s retirement plan is the company’s matching contribution. If you’re looking to motivate your children to save, consider using a similar method. If they’re saving for a particular item, such as a toy or video game, consider offering matches when they hit certain savings milestones.
Save Away for a Rainy Day at Your Local Credit Union
Traditional savings accounts offer a tried-and-true way for people to store money. If you want to start saving for your child’s future, open a youth savings account at your local credit union!
Start Saving for College Now
Maine’s Section 529 plan can help families save for higher education, with all earnings being tax-free! The earlier you start saving for your kids’ higher education, the more time it will have to compound and grow—giving your kids a head start in funding their future educational expenses.
Despite April having already come and gone, we hope your credit union will continue using the tips outlined above to raise awareness and promote financial education with your younger and future members.