49% of Teens Are Opening Bank Accounts. Here Are 4 Tips to Help Them Save More
- Many teens are opening bank accounts but lack confidence about financial topics.
- Find out how to help your teen save more so they feel comfortable about money and establish savings habits before adulthood.
Do you want to help your child save more money? These tips may help.
It's never too early to teach your kids valuable personal finance lessons. If you have a teen, now is the perfect time to help them understand the importance of good financial habits like saving before they become adults. A bank account can be an excellent tool for your teen to learn how to manage money and save. Find out how to help your teen save more.
While some kids and teens may be taught personal finance subjects in school, it's generally not a core part of the curriculum for most students. Therefore, it can be beneficial for families to teach financial lessons at home so their kids are well prepared for everyday life.
Without proper education, young adults must guess their way through critical financial choices -- which could result in them making costly mistakes that impact their futures.
Teens are opening bank accounts but lack confidence
A recent Fidelity study found that 49% of teens are opening bank accounts. A bank account can help your teen learn how to manage their money and save for future goals. If they don't have a bank account, it may be time to open one.
While nearly half of teens are opening and using bank accounts, fewer feel confident about essential money matters. The same study found that only 23% of teens feel confident about financial topics. It's not too late to help your child feel more at ease about money.
One way to make your teen feel more comfortable about financial topics is by talking openly about them. If your teen knows they can come to you to ask questions, they'll be more likely to do so, and you can help them gain more knowledge and confidence around money.
Help your teen save more money
Are you ready to teach your teen the importance of saving money?
These tips may encourage your teen to save more:
- Open a savings account. If your teen is new to saving, getting them a savings account can be a great idea. They will learn how interest works and can easily monitor their bank account balance with free online banking tools. You can get them set up with a custodial account and help them manage it until they're legally an adult.
- Talk about the value of a budget. It can be difficult for teens to grasp how much money it costs to cover everyday expenses. Teaching your teen how to budget is a valuable life experience that will help them as adults. Plus, these discussions may encourage them to save more of their money. Budgeting apps can make the process easy and fun.
- Have them save a portion of the money they receive. If your teen receives money for birthdays, holidays, or even from working a part-time job, have them set aside a certain amount of money for savings. This can help them get into the habit of saving regularly. They can still reward themselves for their work by spending a portion of their funds.
- Consider matching their savings contributions. If you want to get your teen interested in saving, you might consider matching their savings contributions or offer another incentive so they feel motivated to learn more about personal finances.
You can set your child up for financial success by educating them about important money matters. They will appreciate it when they're adults. If you're ready to help your teen open a savings account, check out our list of best high-yield savings accounts.
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