Do you want to help your child save more money? These tips can help.
- Many teenagers open bank accounts but lack confidence in finance.
- Find out how you can help your teen save more so they’re comfortable with money and set saving habits before adulthood.
It’s never too early to teach your children valuable personal finance lessons. If you have a teenager, now is the perfect time to help them understand the importance of good financial habits like saving before they grow up. A bank account can be an excellent tool for your teen to learn how to manage money and save. Find out how you can help your teen save more.
While some children and young people are taught subjects related to finance at school, for most students it is generally not a core part of the curriculum. Therefore, it can be beneficial for families to teach finance classes at home so that their children are well prepared for everyday life.
Without proper education, young adults must guess their way through critical financial decisions — which could lead them to make costly mistakes that impact their future.
Teenagers open bank accounts but lack confidence
A recent Fidelity study found that 49% of teenagers open bank accounts. A bank account can help your teen learn how to manage their money and save for future goals. If they don’t have a bank account, maybe it’s time to open one.
While nearly half of teens open and use bank accounts, fewer feel confident about important money matters. The same study found that only 23% of teens feel confident about finance. It’s not too late to help your child become more comfortable with money.
One way to make your teen feel more comfortable about finance is to be open about it. If your teen knows they can come to you to ask questions, they’ll be more likely to do so, and you can help them gain more knowledge and confidence about money.
Help your teen save more money
Ready to teach your teen the importance of saving money?
These tips can encourage your teen to save more:
- Open a savings account. If your teen is new to saving, opening them a savings account may be a good idea. They learn how interest works and can easily monitor their bank account balance with free online banking tools. You can set them up in a custody account and help them manage it until they come of age.
- Talk about the value of a budget. It can be difficult for teenagers to grasp how much money it costs to meet daily expenses. Teaching your teen how to budget is a valuable life experience that will help them as an adult. Also, these discussions can encourage them to save more of their money. Budgeting apps can make the process easy and fun.
- Let them save part of the money received. If your teen gets money for birthdays, holidays, or even a part-time job, have them set aside a certain amount of money to save. This can help them get into the habit of saving regularly. They can still reward themselves for their work by spending some of their money.
- Consider doubling your savings. If you want to get your teen interested in saving, you might consider doubling their savings or offering some other incentive to make them feel motivated to learn more about personal finance.
You can make your child financially successful by educating them about important money matters. They will appreciate it when they grow up. If you’re ready to help your teen open a savings account, check out our list of the best high-yield savings accounts.
These savings accounts are FDIC-insured and could earn you up to 12x your bank
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