Youth savings initiative to run from 10th – 17th May 2015
{10/05/2015} St. Colman’s (Claremorris) Credit Union Limited is calling on parents to spend some time this week talking to their children about being sensible with money and why it’s important to save for a rainy day. The call comes as the Irish League of Credit Union launches its annual National GR8 Savers Week. The initiative aims to highlight the need to provide children with a healthy attitude to money and savings and underlines the important role that parents can play in assisting children to develop a savings habit. GR8 Savers week will run from the Monday 11th- 17th May in St. Colman’s (Claremorris) Credit Union.
A 2015 Teens & Money survey undertaken by ILCU showed that 7 in 10 teens receive pocket money from their parents; of these, 74% receive it on a weekly basis with 18% of teens receiving more pocket money than 12 months ago. 75% save approximately a third of their pocket money with 51% saving with their local credit union. 45% say that they are saving money to buy a new phone or computer. With the majority of children receiving pocket money it would has never been so important that parents play a role in assisting children to develop a savings habit. There is great potential here to further develop the idea of educating children to be sensible with money. St. Colman’s (Claremorris) Credit Union together with parents and teachers from the local community can play a big role in this regard.
Commenting on the initiative, Gerry Kelly, Manager of St. Colman’s (Claremorris) Credit Union said:
“It has never been more important to provide a solid financial education to our young people. A healthy attitude t money is crucial to ensure that children don’t develop bad habits when it comes to money management. If money skills are learned at an early stage, it is likely that they will stay with you for life. The benefits of teaching children about money early on are both immediate and long term. In the short term, they may develop strong saving habits, learn how to make smart purchases and learn why they can’t immediately get everything they want. In the long term, we can help them avoid getting into debt. And by teaching the value of saving in the future, you can put them on the road to financial security.”
He added: St. Colman’s (Claremorris) Credit Union wants to help local parents to give their children a solid financial education from a young age. I would invite any parents in the local community to call into our office and set up an account for their children. We are a not for profit organisation offering fair and affordable financial services locally with your best interests at heart.”
TOP TIPS FOR PARENTS TO HELP CHILDREN DEVELOP SMART MONEY HABITS:
1. Consider rewarding children for regular saving. The amount saved isn’t critical; rather it is the savings habit which is most important to nurture. Helping children to save small amounts on a regular basis helps to imbed the habit.
2. Encourage children not to buy on impulse but to take time to consider their decision.
3. Help children to identify savings goals- both short term and long term. In many cases, the concept of saving only becomes real when the child can see the rewards at the end.
4. Develop a savings plan or calendar to highlight when the goal can be achieved.
5. Give pocket money in small denominations to encourage children to put a little aside.
6. Consider linking pocket money to chores. This helps to embed the idea that money must be earned. The more effort required by the child to earn the pocket money, the less likely s/he will be to squander it.
7. If pocket money runs out at an early stage, don’t rush to replace it. Providing additional money at the drop of a hat will defeat the purpose of providing a set allowance to the child.
8. Give children a piggy bank or better still, bring them to the credit union to become a GR8 Saver.