Set up your Child for Saving Success
29 January 2015
As the next generation of aspiring Australians converge back into classrooms across the country this week, Suncorp Bank has released its top tips to motivate a healthy saving appetite for the nation’s youngest savers.
Suncorp Bank Regional Manager for North Queensland, Brad Steele, said the new school year is an ideal time for children to begin learning about the importance of money, saving and budgeting.
“Instilling an appreciation for the value of money early will help parents lay the foundations for their children’s future financial success,” Mr Steele said.
“Suncorp Bank data shows over the past five years the value of Suncorp Bank Kids Savings accounts have increased by 35 per cent and the volume of accounts have increased by 19 per cent.
“These figures highlight the value Australian families place on children developing a strong understanding and appreciation of money early in life.”
Suncorp Bank has developed five top tips for parents to support their children in developing strong budgeting and saving skills:
1. Start early
As children go through school and develop their learning skills, it’s important for them to understand the value of budgeting and money. Starting earlier can make it easier for children to develop strong saving habits. Saving just $20 per month in a Suncorp Bank Kids Savings account from the age of 5 can result in a balance of more than $4,000 by the time a child reaches 18 years old.
2. Instil the importance of saving
Explain to children that you are putting money aside for birthday presents or a holiday. This can help to teach them the importance of planning ahead and saving towards a goal.
3. Manage spending money
Take children grocery shopping and involve them in comparing prices. Discuss with children how they can help save money by turning lights off in unoccupied rooms or turning the TV off if no one is watching. Have sound financial habits yourself. Children often learn by example.
4. Learn about budgeting
You can also give children a general overview of the monthly family budget, just enough to show them that a large portion of the monthly budget goes towards groceries and bills and that it’s not always possible to buy that big item without forward planning and saving.
5. Have some fun
The aim isn’t to overwhelm children. It’s possible to get a bit creative at the same time as learning all about saving money.
More information on Suncorp Bank’s award-winning Kids Savings Account.
About Suncorp: Suncorp Group includes leading general insurance, banking, life insurance and superannuation brands in Australia and New Zealand. The Group has 14,500 employees and relationships with nine million customers. Suncorp Group Limited is a Top 20 ASX-listed company with $94 billion in assets. Suncorp Bank is Australia’s leading regional bank servicing more than one million personal, SME and agribusiness customers.