Early Education Key to Long-Term Savings Success
SALT LAKE CITY, UTAH; April 7, 2014 — When it comes to kids and money, it’s never too early to teach them how to be savvy savers.
A 2011 study by researchers at Kansas State University identified how unconscious beliefs about money developed in childhood affect people as adults. More recently, researchers at the University of Cambridge said multiple studies have shown our money habits are typically formed by age 7.
Armed with this knowledge, more than 80 Zions Bank employees are visiting local schools in Utah and Idaho to teach nearly 7,500 kindergarten through 12th grade students in honor of National Teach Children to Save Day.
Now in its 18th year, National Teach Children to Save Day is an outreach program offered through the American Bankers Association Education Foundation.
“We’re proud to help support what parents and local schools are already doing to promote financial literacy so that kids will grow up to succeed when it comes to budgeting and saving money,” said Zions Bank President and CEO Scott Anderson.
Parents can follow these five simple steps to enhance saving at home:
- Set Goals. Help your child set short-term and long-term goals so they can learn how to save money they earn through chores, receive as gifts, or get through an allowance.
- Start Talking. When your children hear you generally discuss bills, loans, and checking accounts, they can learn the roles money plays in our lives. Talk to them about your experiences with money — even your mistakes. Encourage questions, and be prepared to answer them.
- Teach the Uses of Money. Teach your children the four uses of money: spending, saving, giving and investing. Help them allocate their money into those categories. A good formula for that is 10 percent for savings, 10 percent for giving, 10 percent for investing (or long-term savings), and the rest for spending.
- Keep Track. Children learn visually, so you may want to create a system that will allow them to watch their money grow as they save. Clear glass or plastic jars work well. Older children can record the money they earn and where they spend it, or open a savings account to see their money grow as they accrue interest.
- Explain Wants and Needs. Teach children the difference between the things they need and the things they want, and the value of saving and budgeting. There can be real-life consequences when these differences and values are not understood.