By Precious A. Earley
How do you “stash” your cash?
Community Financial recently celebrated National Credit Union Youth Week by asking this question to our team members and they offered some helpful tips to kids about saving money.
Randy Penner, vice president of Sales and Marketing at Community Financial, says, “Don’t spend your change. Each night, I put the coins in my pocket into a coin bank. Those pennies, nickels, dimes and quarters can add up quickly.”
According to a 2012 national phone survey, conducted by Harris Interactive, a large number of kids are allowed to choose what they want to do with their money. The majority of the parents surveyed reported that their children, most often, used their money to purchase toys or to hang out with friends, while the parents paid for necessities and additional indulgences such as video game rentals and movies.
Mortgage Underwriter, Michelle Van Dam encourages kids to get two jars: a “want” jar and a savings jar. She says kids should put part of their money in the “want” jar and the rest in the savings jar.
“Once you have enough money in the “want” jar, you can buy what your eyes were set on,” said Van Dam. “This allows a child to set a goal, achieve a goal, and be rewarded, without tapping into their savings.”
What a great idea, right?
At Community Financial, our commitment to educating the community is rooted in our belief that there are rewards in teaching children early about best practices to manage their money and make good financial decisions. We believe saving is a choice that builds character. While most people have no problem spending money, it takes discipline and commitment to save money.
|Michelle Van Dam|