When is the best time for kids to start saving?

Tips from your local banker

wallkill valley federal savings and loan saving money for kids

Teaching kids to save is an important life lesson.  Here is some advice for parents to help pass on good saving habits to the younger generation.

Start Young
A piggy bank is a great way to introduce young kids to the value of money.  Kids as young as 2 can start to save money by collecting all those shiny coins they find around the house and dropping them through the slot.  This does two things:

  • Teaches kids there is value to the coins themselves, that is why we set them aside and save them.
  • Provides valuable teaching moments for parents to talk to their kids about the importance of money and how we should handle it.

As they get older
Once the kids have filled their piggy banks, it may be time for them to open a savings account.  Again this becomes a wonderful time of teaching and bonding between a parent and a child.  Opening a simple savings account gives parents the opportunity to talk about money, to teach about interest and to help show them how to be fiscally responsible. 

  • You will want the bank to be close.  The easier it is for you to get to the bank, the more likely you will be to take your child to make frequent deposits.
  • You will want to look at banks that have savings account options with low/no fees or balance requirements.
  • Once they are teens, they may be interested in a checking account so you may want a bank that offers checking accounts with no/low fees.

Saving for their future
If your concern is helping a child save for their future, meaning saving money for college, then there are many things to consider.  If college bound kids have more than $3,000 in a savings account it could affect their ability to get federally funded financial grants or federally funded loans.  It could be better to invest via accounts such as a 529 College Savings Plans, UGMA accounts or Roth IRAs on their behalf.

If you are interested in opening up a savings account for your kids, Wallkill Valley Federal Savings & Loan’s Passbook Savings Account is a great option.  You can open your account with as little as $10 so bring your kids, their birthday money from grandma and their piggy bank and we can help them get started on the road to fiscal responsibility!

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