Help kids make saving a habit

Car payments. Insurance. Gas. Clothes. School activities. Sports. Dates. The list goes on.

Often when teenagers are learning to manage their first paychecks, the priority is spending. Summer jobs offer an ideal opportunity to expand your teenager’s view by reminding them about the importance and advantages of saving. my529 encourages you to consider starting or continuing a habit of saving.

Together, take some time to discuss your student’s plans for their education after high school. You can use my529’s College Savings Estimator to figure out estimated costs for colleges, community colleges, technical schools and other types of higher education. Then work together to establish a goal for higher education savings. The estimator can help you look at current and future costs for a variety of institutions. To find trade schools, search by name of institution.

Talk with your teenager about how they can make a meaningful impact toward their future goals by setting aside some money. Teach them the notion that you can pay yourself first by saving. Even small amounts saved regularly can add up.

Creating a habit of saving will benefit them during their school years and beyond. It can also reduce their dependence on borrowing. Explain that every dollar saved for higher education is one that doesn’t need to be paid back with interest. 

One way to make your habit stick is to set up scheduled contributions. A few minutes is all it takes for your teenager to schedule contributions to both their savings account and their my529 educational savings account. That way, they are learning early to make their money work for them, while planning for their future. The funds in their my529 account can cover qualified education expenses at many different types of institutions. Learn more at my529.org.

Creating a habit of saving will benefit children during their school years and beyond.