By Mike Carlton

With the summer months here, you may have a teen in your home who will hold a part-time or even a full-time job and have his or her own money to spend. As a parent, you will have the perfect opportunity to teach your children some money management principles and help guide their financial decisions.

The American Bankers Association, which represents banks of all sizes and charters and is the voice for the nation’s $13 trillion banking industry and its 2 million employees, encourages parents to begin teaching their children early how to save and manage their money. In fact, the ABA Education Foundation has created a Teach Children To Save program to bring a clear and thorough understanding to children of the basic concepts of how to save money and why it is important.

A national campaign to help young people develop lifelong savings habits, Teach Children To Save has reached 3.4 million young people with the help of some 80,000 banker volunteers through its annual awareness day and the Teach Children To Save website at www.teachchildrentosave.com.

TEACH CHILDREN TO SAVE: HOW THE PROGRAM WORKS

Elizabeth Cantino, assistant vice president and community banker at Crescent State Bank, is involved with Teach Children To Save and had this to say about the program: “We believe it is important to teach children about money and savings. It is a crucial part of providing our youth with a superior education.”

It is the responsibility of a community bank to help its industry provide America’s youth with the tools they need to become good money savers.

“Children are typically fascinated by money – they enjoy spending and salivate at the thought of becoming rich,” Cantino said. “However, they may know very little about money management and the importance of spending less than they have, and the key role that a budget plan plays in lifelong finances.”

Joining the nationwide effort, we invite schools and organizations in the state to participate in the National Teach Children To Save program. Cantino visits these schools and organizations with flexible lesson plans created specifically for kindergarten through 1st grade, 2nd through 3rd grade, or 4th through 6th grade students.

“I work with parents and teachers to tailor a presentation to meet the needs of their children,” Cantino said. “I address the topic of saving in a stimulating and interactive environment. The presentations include games and activities to allow the children to apply the concepts I present.”

LESSON PLANS DESIGNED TO SUPPORT NATIONAL STANDARDS

The lesson plans Cantino uses are designed to support the Jump$tart Coalition for Personal Financial Literacy standards and curriculum standards established by:
– National Council of Teachers of English;
– National Council of Teachers of Mathematics;
– American Association of Family and Consumer Sciences.

Why is this program important? Studies show that children are not learning the skills they need to make smart financial decisions as adults. Schools teach other life skills – such as driving a car – but fail to spend enough time teaching financial skills.

“It’s exciting to have bankers in schools today to fill that gap and prepare future customers for financial success,” Cantino said. She had the following tips to share with parents on how to teach their children about saving and money management.

TIPS TO HELP TEACH CHILDREN ABOUT SAVING AND MONEY MANAGEMENT

– Help your child open a savings account and make deposits into it regularly. Most banks offer children’s accounts. For example, we make a $5 contribution toward your child’s savings when they open a junior savings account.
– Make going to the bank a fun experience. Most of the time, banks offer children treats and surprises when they visit, such as lollipops or balloons.
– Talk to your children about the family budget and the difference between wants and needs.
– Reinforce these talks by budgeting for a purchase or a family Outing, and discussing the details with your children.
– Explain how the ATM works, and that to take money out of the bank, you must first put money into it.
– Give your children positive feedback about their spending and saving habits.
– Give your children more responsibility over how they spend their money as they get older. This will help prepare them for handling their own budget when they go to college or strike out on their own.
– Agree to match whatever contribution your child makes to his or her savings, similar to a 401K. 

For 14 years, the Teach Children To Save program has partnered banks with students for lessons on the importance of saving. The program’s goal is to encourage bankers to reach 5 million students before the end of 2011, which is the program’s 15th anniversary.

Children need to understand money management skills before they have the responsibility of handling their own money. Money-wise adults will reinforce these lessons by teaching their children to save by example.

Mike Carlton is the president and CEO of Crescent State Bank, which operates 15 full-service banking offices in Cary, Apex, Clayton, Garner, Holly Springs, Sanford, Southern Pines, Pinehurst, Raleigh, Knightdale, and Wilmington. For more information, visit www.crescentstatebank.com.