Moving Forward: Teens and Parents
A trip to the bank
When your kids save money in a piggy bank or a small jar, they learn how money “grows” when you tuck it away. They see it. They feel it. They can check on it at a moment’s notice.
Now, tell them they ought to take that money to a bank and give it to somebody to take care of for them. They may not be as excited about that for one of a number of reasons. They might find it hard to understand how they still control the money even though it’s not sitting on their dresser. They might wonder how they can still get and spend the money if they need to. They might fear they’ll never see it again, or believe it’ll be safer under their watchful eye.
As an adult, you know the benefits of saving and you know the benefit of using a bank to help you save. Now, you need to educate your kids on the benefits. Getting your kids to think about saving at all is a major step in the right direction. Getting them to hand over their precious savings could be another.
Start talking with your kids about taking that first trip to the bank with these helpful tips:
- Ask questions. The best way for you to know what’s going on with your kids, what’s on their minds, is to ask. They may be flattered that you took the time to ask instead of just telling them what you want them to do. See what they know about saving and what they may know about banks and how they work.
- Remember...they’re kids. How you go about describing banks and how they work will depend on your child’s age and maturity. Talk in terms they’ll understand. Boil the complexity of “interest compounded daily” down to something that means something to them, but don’t talk down to them. Your child may appreciate your taking this step toward greater responsibility with them.
- Listen. Kids are curious. They’ll probably have all sorts of questions about banks and banking. And while you might focus on forms, deposits and interest, they might wonder if they have pens with little chains on them or where the giant safe is. Remember, there are no stupid questions and curiosity is a good thing.
- Make it fun! Make finding and visiting a bank a bit of an adventure. Something you can do together. You can research banks to see which ones offer special accounts for kids. There may be giveaways or benefits to opening an account your child never thought of.
Moving from a piggy bank to a real bank is a big step in the world of an early saver. It can show accomplishment, understanding and responsibility. It’s also another opportunity for you and your child to talk. Not only about money and banks, but about your child’s goals, hopes and dreams. Keep those conversations going. They’re invaluable.
This article is provided for general, informational purposes only and is not intended as advice specific to your situation.
