Your Child’s Savings Goal: $1,000
A savings goal of $1,000 by the time your child turns 18 might sound like a lot of money, but broken into small, regular deposits, it’s easily achievable. Saving just $10 a month starting at age 5 adds up to $1,000 well before age 18 – and that doesn’t even include the dividends paid on the account.
Consider these tactics to help your child reach his or her savings goal.
- Match amounts that your children save – if they put $5 into their savings account, deposit an additional $5.
- Encourage them to deposit a portion of any money they receive – birthday money, allowances, and paychecks.
- Find fun, educational resources with the SLFCU Savings Laboratory. Members age 12 and under can earn prizes for depositing money to their account.
- Review your child’s progress. Check account balances together to see if your child is on track and, if not, discuss how to get there.
- Have your child share his or her savings goal with friends and family – they may be willing to help.
- If you plan to contribute to your child’s savings goal, set up automatic payments from your account into your child’s.
Why is it important to save $1,000 by age 18? As a teenager, your child will need to build credit , and $1,000 can get them a guaranteed loan, with no credit history needed. It’s also a great start to building emergency savings that they may need as an adult. There are other options available for those who have saved at least $500 or are just getting started with no savings at all. Check out How Can I Start Building Credit? to learn more.Go to main navigation