At Bank of St. Francisville, we believe that the entire community benefits when more of us are educated about money management. Being financially literate prepares us to meet life’s goals, and provides stability and peace of mind as our needs change. One of the best ways to create a financially literate community is to expose young people to the basics of money management at an early age.
“Exposing children and teenagers to financial literacy tips is so important,” says Janis Crutchfield, BSF Vice President of Consumer Lending. “You start building your credit rating as soon as you have your first bill, so developing an understanding of personal finance is key to building a solid future.”
A great way to begin, says Janis, is to open a savings account in a child’s name to demonstrate the value of saving. As children receive birthday money or earn allowances, encourage them to deposit the funds into their account, and experience the satisfaction of watching their balance grow.
“This is such an effective way to raise a financially aware person,” says Janis. “The act of saving, even if it’s just a little every month, is something that everyone needs to learn how to do. Adults need to save for rainy day expenses, college funds, and retirement, which is so much easier to do if you’re already in the habit of saving.”
“As kids turn into teenagers, they can open checking accounts, obtain debit cards, and begin reconciling a monthly statement,” says Janis. It’s a great idea to maintain a savings account and continue depositing a certain amount into it each month.
“Everyone has big purchases they want to make, and everyone encounters emergencies,” Janis says. “So, having a cushion that’s not part of your monthly expenses is critical.”
As teenagers turn into adults, savings accounts can be converted into other savings vehicles, including certificates of deposit or Christmas club accounts, which are designed to help set aside funds until they’re needed.
“The whole idea of saving is getting into the mindset that if you put aside something consistently every month, you don’t miss it,” says Janis. “The earlier we teach kids this lesson, the more successful we make them down the road."
Would you like to discuss opening a checking and savings account for your child? Call us at (225) 635-6397 or make an appointment HERE today.