Why opening a savings account early is a smart option
While savings accounts and financial decisions may seem like an adult topic, many families encourage their children to start saving money from an early age. Collecting change and putting aside any cash from small jobs here and there is a smart way to get children and young adults thinking about their future. Parents can take their kids to self-service coin machines at their local bank or credit union after they've collected enough change to count and put in their account. Plus, credit unions and other financial institutions are willing to work with young savers who are ready and willing to put away their hard-earned dollars that over time will become a hearty savings account.
Saving early develops ample funds for adult lifestyles
Forbes pointed out that many adults are faced with a lack of funds for their retirement years. The source stated that savings should start earlier rather than later. The problem with not opening a savings account early on and failing to plan for long-term goals is that people won't have the option of supporting themselves when it comes time to live independently or invest in financially savvy opportunities. Additionally, starting a retirement plan too late in life will not allow for ample funds when the time comes to live off of money previously set aside.
Looking into the future is a smart option for many families as kids may be faced with college fees, car or housing loans or monthly rent within a decade or two. Teaching children to put away a portion of their change or spare cash from an early age will make those costs more bearable when they come about. However, establishing a saving pattern early on helps develop a smarter approach to money management and encourages financial skills for the future. Being smart about bank accounts will open up more opportunities for young adults as they transition into a time of more responsibility.
How credit unions can help
Banks and credit unions can help encourage this behavior by providing coin counting machines to help them count the change they've saved. Offering additional support and simple savings advice to younger generations will prove successful and help ensure a more stable economy down the road. Because money management is so important to future generations, establishing good savings practices needs to start now and financial institutions can communicate this to their members.
September 11, 2013