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06
Apr

Savings Accounts Can Help You Prepare for Future Goals and Challenges

Written by admin. Posted in Credit union account, Credit union auto loan, Credit union credit cards ashland ky

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Your 16 year old daughter takes savings accounts seriously. So seriously, in fact, that she has three of them. One is for college because she has now had three years of experience watching her older sister exist on little to no money during the school year. As a result, your 16 year old daughter is determined that she will have money set aside so that she can have access to some of her own spending money when after she graduates high school next year.

In addition to her college savings account, your youngest daughter also has a travel savings account. She has already decided at her young age that she would rather enjoy experiences than things. As a result, she is prone to putting the babysitting money that she earns into this travel account instead of heading to the mall with friends to buy clothes. You are glad that she realizes that the constant spending on clothing has very little long term value. Because of her travel saving efforts, she is now able to make sure that she has the funds to help pay for school trips that otherwise would be too expensive.

The third savings account that your daughter has is more traditional. It is an account that is not dedicated to college or travel, but is simply a place to save part of the money that she earns. The majority of the money that she makes is from babysitting, but she also has two piano students that pay her for once a week lessons as well. This account recently took a significant hit when the orthodontist announced that the Biggest Saver in your family has to wear braces again. It seems that while she is great at saving, she is not great at consistently wearing her retainer. As an unfortunate result, she will now be wearing another set of straightening guards to reclaim her great smile. That smile, however, was erased by tears as she wrote an $800 check to contribute her portion of the upcoming orthodontist fees. She wondered, in fact, if it was even legal for a 16 year old to write a check for this much money.
When the tears were over, you joked with your daughter that she should perhaps open a fourth account. You thought that you were kind of funny when you suggested that she should have an Oops Account for these kinds of emergencies.

Savings and Checking Accounts Provide Great Learning Experiences for Teenagers
When you realize how many Americans are financially strapped because they are overwhelmed by huge amounts of credit card debt, it makes sense that we live in a time when even the youngest children should start getting in the habot of saving, rather than spending.
Credit cards, in fact, are an increasingly popular method of buying the things that we want. In fact, as many as seven in 10 Americans have at least one credit card. And while one credit card may not be a problem the fact of the matter is that a number of credit cards with high balances can make it difficult to get affordable home loan rates. When parents take the time to model responsible spending and a commitment to savings they are providing there children with a firm financial foundation.
The latest research indicates that the average borrower in America has $17,966 in auto debt alone. When you add home debt and the daily purchases that are put on credit cards, you can get yourself in a spot where the money that you owe is overwhelming. Making the decision to teach your children the responsible way to handle their money and to use credit is the best way to empower them. Given that as many as 60% of Americans agree that the U.S. will soon become a cashless society, a society in which all purchases are made with credit cards and other forms of electronic payment, is one reason to make sure everyone needs to handle their credit responsibly. Statistics like these from a 2016 Gallup survey are a reminder that teaching credit responsibility is an ongoing process. One that even adults have to continue to practice on a daily basis.

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