In today’s world, parents of school-aged children face many challenges, from managing daily routines to planning for their child’s future. One crucial aspect of this preparation is teaching them how to manage their finances and develop healthy money habits. Research indicates that children develop an awareness and curiosity about money earlier than parents might anticipate, with many financial habits established by the age of seven.
At Piscataqua Savings Bank, we understand the importance of banking programs for our younger customers, and the challenges that parents may face when navigating this journey. In this blog, we’ll provide a helpful guide for parents focused on college preparation, outlining services PSB offers and sharing useful resources to better prepare you and your children for the future.
The Importance of Financial Literacy
Financial literacy is an essential life skill that can significantly impact a child’s future. Teaching children how to manage money responsibly from a young age sets them up for success in adulthood. It’s never too early to start educating your children about the basics of saving, budgeting, and spending wisely. Piscataqua Savings Bank gives parents the tools to make it that much easier.
Saving for College with PSB
At PSB, we offer a range of services to help parents teach their children about financial responsibility and save for their future.
Piscataqua Savings Bank offers a unique banking program for our younger customers, with touchpoints and resources for three different age groups that allow them to learn about saving and managing their own money.
- Kids’ Bank Explorers (Ages 0-8): Meant for the littlest of our littles, Explorers build the foundation for financial literacy. Your young one can open their first bank account and learn the importance of regular deposits. Friends and family members can also contribute.
- Kids’ Bank Voyagers (Ages 9-13): Our Voyagers set sail with their savings accounts. This program builds upon what your young one has learned in Explorers by teaching them to begin to set both short and long-term financial goals.
- Kids’ Bank Navigators (Ages 14-18): Prepare your young adult for the real world by setting them up with their first checking account and the tools they need to navigate their first major financial decisions and needs. After this stage, young adults may switch to an adult checking account.
These accounts offer distinct features to help your child grow their savings while learning valuable financial lessons. They include a savings interest rate that is always 0.25% higher than a regular “grown-up” account (with no fees, ever), access to our on-site coin exchange machine, and additional programs and online resources to further help teach children about money.
Certificate of Deposit (CD)
Certificates of Deposit (CDs) are a type of savings account that offers a fixed interest rate over a specific period of time, known as the term. CDs can be a valuable tool for saving for college, as they provide a secure and reliable way to grow your money while keeping it safe. By choosing terms that align with your savings goals and timeline, you can ensure that you have funds available when your child is ready to start their higher education journey.
At PSB, we offer a five-year Kids’ Bank CD to set your child up for success in their future. There is a minimum $250 to open the CD, with the opportunity to add $250 at a time. This CD is available to all ages under 18, and may be closed at any time with no penalty after two years.
Helping your child develop good financial habits is an investment in their future. By introducing them to concepts like saving, budgeting, and investing early on, you can set them up for success. PSB is here to support you in this journey with our range of services and resources. Visit our blog to learn more and discover practical advice to support your child’s educational journey.