b
y Chris McCullough
Near and dear to me is teaching our children how to be financially responsible. At Rabobank, we participate in great programs, such as “Teach Children to Save” where we volunteer at local schools and teach about the importance of saving money.
I stress to my customers that they need to set up minor savings accounts for each of their children and get them involved in the banking process. Stress to the children that they can put their “birthday” money and “holiday” money in their accounts and watch as it grows over time.
Teaching children to avoid “impulse” purchases and that while a toy might look great on television, it often turns out to be not quite as fun as it looks. Some things to share with your children as they enter those key years of 6 to 10:
- Make smart choices about how to spend your money.
- Shop around and compare prices before you buy.
- Putting your money into your savings account will protect it and also earn interest.
For those with older children, here are a few key messages you can stress:
- Save at least a dime of every dollar you earn or receive.
- Guard your personal information because entering it online is risky.
- Credit cards are loans and if you don’t pay the full balance each month then you have to pay interest.
All banks, including Rabobank, offer a minor savings account that you and your child can sign up for. Allow your child to go to the bank with you and make their own deposits and keep their bank book and statements so they can watch their account grow. This gives them the hands-on experience and allows them to understand where their money is and how it is working for them.
Chris McCullough is Rabobank, N.A. Vice President and Branch Manager in Murrieta. Rabobank, N.A. has 119 retail branches in California, including Murrieta. www.RabobankAmerica.com.