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Here’s how you can safely and soundly kickstart your child’s saving journey.
As parents, you are responsible for teaching so many life lessons as your children grow up. From taking those precious first steps, learning to ride a bike and even some practical DIY and home skills; you are there to help them figure out the ways of the world.
Another crucial life lesson in the growing up formula is money, and how to manage it.
Money can be a difficult topic for many to approach. After all, money management has become more and more complex, while the lingo and jargon surrounding it has become more confusing.
Having said that, open and meaningful conversations about personal finances can take a lot of the mystery out of money – and that’s true for adults and children alike. Leading research has shown that children as young as three can develop an awareness of money and by seven, they can develop money habits that will stick with them for life.
With that in mind, here are five simple saving tips you can share with your child to start them off on the right foot.
Open a savings account
Whether you have a little or a lot of money to save, having a savings account to put money in frequently is a great first step to becoming a super saver.
Set saving goals
Setting a goal can help keep your child on track and reach their saving goals. Maybe they want to see if they can save a certain amount before the end of summer? Or they could be eyeing up a new device? Whatever their goal is, having a clear target can go a long way.
Make a budget
Keep a spending diary for a month with your child so they can see where their money is going. Help them work out a budget they can stick to, eliminating pointless spends and saving the excess. Your child might be surprised by how this simple exercise can help your savings stash grow and get you to their savings goal quicker.
Save on your spends
Teach your child that they don’t always have to splash out for what they want. Encourage them to seek out bargains, opt for pre-loved items and shop around for the best deals.
Earn more money
Encourage your child to increase their pocket money by taking on extra chores around the house. Older children, meanwhile, can opt for bigger jobs, such as dog-walking, mowing the neighbours’ grass or babysitting.
Ready to kickstart your child’s saving journey?
Bank of Ireland’s Smart Start Account and Smart Start Money Pot have been specifically designed to empower kids between the ages of 7 and 15 to learn basic spending and saving skills. The Smart Start Account is designed with built-in safeguards to help protect you and your child while they learn about managing money. With a maximum balance of €10,000 and account restrictions like no standing orders, direct debits or third-party transfers, you can have peace of mind while your child learns how to bank responsibly.
Parents/ legal guardians own the account and have full visibility into how their child is using it. Easily keep track of your child’s spending activity from your 365 online profile, and step in when needed – you are in control – including the ability to freeze the card at any time, transfer money in, and receive spend alerts. Parents can also set spending limits and cash withdrawal limits to promote responsible spending.
Kids, meanwhile, will receive their own Visa debit card with their name on it to use in shops and online. They’ll also be able to build smart money habits with 365 online. Here, they can track their spending, see their savings grow and stay on top of their transactions. Bank of Ireland’s Mi365 money insights will also give them helpful tips and guidance to support their financial confidence and wellbeing.
Smart Start Account holders can also open a separate deposit account, a Smart Start Money Pot, as part of their application. Managed by you, the parent/legal guardian, it has been created so that you can help your child learn the value of saving, and encourage them to save small amounts for the things that matter to them, whether that’s a toy or new tech.
You can learn more about Bank of Ireland’s Smart Start Account and Smart Start Money Pot right here.
The Smart Start Account and Smart Start Money Pot is available to new and existing Bank of Ireland customers who are a parent or legal guardian of a child age 7 – 15 and resident in the Republic of Ireland. The child must be living with you on a full-time or part-time basis.
Bank of Ireland is regulated by the Central Bank of Ireland.
