Commonwealth Bank Teaching Kids To Save

The Commonwealth Bank has launched a new initiative to show kids the value of money and helping them to save while they are still young. Teaching kids to save from a young age makes perfect sense since we can never learn too early and too much about handling a financial budget.

By doing so, your children will be better prepared to deal with money in general, helping them step out in confidence and avoid unnecessary debt later on in life.

Commonwealth Bank’s Head of School Banking Lisa Cartwright shared the following tips to help kids save money:

• As a parent you should aim to help your children learn the difference between wants, wishes and need. You will do them a huge favour for when they have to make their own decisions later on.
• It is a good idea to make your kids familiar to the money concept from an early age – the sooner, the better.
• Giving your child pocket money every week will actively educate them about the value of money. You could also use a rewards points system by which you reward your children for a good deed in the house, such as washing the dishes, moving the lawn, or dusting the furniture. Not to forget keeping their own room clean.
• Pocket money should be paid by using coins and notes. This will help your child to become familiar with money.
• Educate your child about the value of savings and encourage them to open a savings account.
• If they consistently beg you for the latest gadget stay strong and teach them how to save for goals – short term, medium term and long term.
• Use visual tools such as pictures or drawings to help your kids keep the focus.
• Rule by example. Unless you show your child a good example you can’t expect them to follow your advice.
• When you visit the bank, take your children with you and explain that money doesn’t grow on trees. Once they understand that you had to earn the money to be able to withdraw, they will be much better served for life.
• Talk to your child’s teachers about their financial literacy classes in the classroom. The Commonwealth Bank offers two such programs to schools around Australia including the Commonwealth Bank Foundation StartSmart Workshops and Commonwealth Bank School Banking.

The Commonwealth Bank Foundation has developed some SmartStart workshops to help improve the financial literacy of young people. Those are available to primary and high school students.

Commonwealth Bank’s School Banking program encourages primary school children to learn how to save and manage their money. While at school the kids learn to make regular deposits to their account.

This year there is a also new Rewards Program that helps encourage kids to save regularly. Participating schools will receive commission from School Banking deposits and new accounts – helping them to raise additional funds for school initiatives.

All schools across Australia can participate in these programs free of charge. They will become part of Commonwealth Bank’s onemillionkids commitment. The idea is to educate more than one million Australian school children in financial literacy by 2015.

To learn more about Commonwealth Bank’s support system for kids visit www.commbank.com.au/schoolbanking and www.onemillionkids.com.au.

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