National Teach Children to Save Day

On April 24, 2007, the banking industry celebrates the 11th annual National Teach Children to Save Day. This is the longest running event in what has become Financial Literacy for Youth Month. The ABA Education Foundation is challenging all banks to join the savings education movement and make savings lessons stick in 2007!

According to the 2005 ABA Banking Journal Community Bank Competitiveness Survey, nearly 60 percent of community banks are taking steps to build relationships with children of all ages in their communities. Of those banks forging ties through financial education, most are supplying bankers for classroom lessons.

While progress is being made, there’s still a great need for financial education across the country. As a banker, you know the importance of financial education and what can happen when customers are uninformed. You have the expertise to help fill the gap and be a financial education leader in your community.

This April, share savings lessons with local children and teens. You’ll be educating your future customers and helping create lifelong savers by providing valuable money lessons. You might even take the opportunity to provide educational resources to families and gain new customers.

Register your bank today. Go to ABA's Consumer Connection. Together we’ll make savings lessons stick in 2007!

Commit to the challenge early! We’ll list banks that commit to participate in ABA Bankers News and on www.ABA.com.

For more information and to order a Teach Children to Save resource kit, call 1-800-BANKERS.

Financial literacy is important but not common,
if you consider the following statistics:

• The American family spends $1.22 for every dollar it earns.
• In 2002, 12th graders answered only 50% of questions correctly when tested on personal finance basics.
• Only 15% of high school students currently get any school-based personal finance education.
• When questioned, 60% of pre-teens could not explain the difference between cash, checks, and credit cards.

Financial fitness can be fun!

Teaching your children financial skills is critical for their future. Good habits start early in life and the savings habit brings lifelong benefits. Kids are interested in money. Engage your children using some of these simple, fun suggestions and help them learn the value of money:

Children can learn by example and by doing. Sharing how and why your family is saving emphasizes the importance of this positive, lifelong habit.

Teach your child the importance of saving. Make their savings visible and real by having them build savings in a piggy bank or clear jar.

Help them open their own bank savings account and make regular deposits. Some banks have kids clubs and members get newsletters in the mail or receive balloons or stickers when they make a deposit. Another positive reward your child might enjoy is an ice cream cone or a trip to the park.

Talk to your child about the family budget. Reinforce the learning process by budgeting for a family outing or a purchase. Hold family meetings to talk about your family's expenses and ways to save. Involving your child gives them practical experience and allows them to be an active participant in the buying and saving process.

Show your children how an ATM machine works. While many children know that money doesn't grow on trees, they may think it comes out of a wall. Help your kids understand that you must put money in the bank before you can take it out.

Give your kids positive feedback. As their allowance increases, give them responsibility for how they spend their money and encourage them to save.

A System for Saving Your Money

Savvy saving can start at any age. Help your children learn about money with "Beginner Budgeting" from the ABA Education Foundation.

Best-selling author and ABA Family Finance Adviser Neale Godfrey recommends helping your child split up any money he or she earns, receives, or even finds. Show them how to divide their money using the "10% - 30% - 30% - 30%" system and put it in four separate, labeled containers. Clear jars are best. This makes savings visible and real. After all, everyone enjoys watching their money grow.

• 10% Charity - Take 10% off the top to share.
• 30% Quick Cash - Use this 30% for instant gratification.
• 30% Medium-term Savings - Save this 30% for 1-6 months to purchase something special.30% Long-term Savings - Use this 30% for important things in the future, like college.

Financial Literacy Links

TBA Personal Economics Program (PEP)
Over 100 banks across Tennessee participate in the Personal Economics Program, a consumer education effort that promotes understanding of banking and financial services by enhancing the public's knowledge of economic systems, specifically as they relate to banking and personal financial management. In the past year, Tennessee's PEP program reached over 63,000 people through some 2,000 presentations, thanks to 400 volunteer bankers. To find out if the PEP program is availabe in your area contact the Tennessee Bankers Association at 800/964-5525.

Tennessee Saves Coalition
TennesseeSaves is a state-wide campaign in which The University of Tennessee Agricultural Extension Service, working with other state and national organizations, helps individuals and families save and build wealth.

The Jump$tart Coalition for Personal Financial Literacy
The Jump$tart Coalition for Personal Financial Literacy seeks to improve the personal financial literacy of young adults.
Jump$tart's purpose is to evaluate the financial literacy of young adults; develop, disseminate, and encourage the use of standards for grades K-12; and promote the teaching of personal finance. The Jump$tart Coalition believes that all young adults need to have the financial literacy necessary to make informed financial decisions.