Do you remember your first summer job? The feeling of getting your first paycheck and finally being able to spend your own money was as sweet as the ice cream you were dishing out on the job.
Unfortunately that first paycheck and all the ones that follow have a tendency to disappear when you are dipping your toes in the working world.
The bankers at Wallkill Valley Federal Savings and Loan are here to help your teen learn to save…for both the short and long term.
All About Short Term Savings
Open an account
Allowing your teenager to have their own checking account allows them to start taking responsibility for their finances. This will also allow you to teach them how to make regular deposits, keep track of their bank balance and avoiding over drafts. Checking accounts are also great because they can learn about different tools at their disposal, such as debt cards, online banking, ATMs, and mobile banking. WVFSL’s Student Checking is the perfect fit. If your teen is 16 years old, stop by and open one today.
It is also a great idea to open a savings account at the same time so that they can….
Commit To a Short Term Savings Goal
It has been scientifically proven that humans are more inclined to do something if there is a reward for it. Have your teenager identify something that they would really like, such as a new television, iPad, or awesome pair of shoes. Once they have chosen something small to save for, strategize with them about how to accomplish this short term goal. Check up on their progress and help them celebrate when they are ready to make their purchase! If you are ready to help your teen start saving, our new Youth Savings Account is the way to go. Once they have $100 accumulated, bring them by to open up an account that will not only earn them interest but also give them birthday bonuses until they turn 18!
While you are at it why don’t you help them learn more about saving money when….
They are Shopping
Once they have selected the item they want to save for, help them save money on their purchase. Help them find the best value and how to take advantage of store discounts and coupons. Also encourage them to wait and see if the item they want will go on sale. Go a step further and make your regular shopping trips education and show them ways they can save.
You are building habits that will last a life time.
Now you are ready to start talking to them about saving for the long term.
All About Long Term Savings
Saving for College
We all know that sending your child to college is a huge financial investment. Why not include your teen? Have them allocate a certain amount of their savings account towards their college tuition. Talk to them about student loans and debt in general to help motivate them to save.
Certificates of Deposit
Want to help your teen stash some cash to save for a big ticket item such as a car or college? The reason a CD is a nice option for teens with a long term savings goal is that the money is put aside for a set period of time and it cannot be touched without incurring a penalty. So if your kid has set aside between $500 and $2500 (CD’s generally have high minimum deposit requirements) a CD is a safe option that will earn them a higher interest rate than a regular savings account.
While your teenager may have many years before they retire, the earlier they start saving, the better! It really is never too early to start. There are many different types of IRAs to choose from and the Wallkill Valley Federal Savings and Loan staff can help to navigate which is best. If you have a teen who is turning 18, encourage them to starting thinking about the future and bring them in to speak with someone today!
At Wallkill Valley Federal Savings and Loan, we want to help the teenager in your life build good saving habits so they are financially secure when they are older. If you or your teen is in need of advice we are more than happy to help. Stop by one of our branches today!