Families Encouraged to Make Saving a Habit on National Teach Children to Save Day
WASHINGTON, April 11, 2011 /PRNewswire-USNewswire/ -- Marking the 15th Anniversary of Teach Children to Save day, the ABA Education Foundation released today the top five reasons why families should get young people started saving by opening a children's savings account.
"Saving is more than money in the bank, it builds character and self control – an important quality in our culture of immediate gratification," explains Laura Fisher, executive director of the ABAEF which sponsors the program. "More than 1,200 banks across the country are taking the lead in ensuring that children in their communities have access to savings education and accounts. We encourage parents to ride this momentum into the bank and open a savings account."
For those still on the fence about the benefits of saving, here are five reasons to open a children's savings account today:
- Teaching kids to save teaches self control.
Choosing to save instead of spend, is an exercise in self control. The famous 1927 Stanford Marshmallow Experiment showed that kids with self control are psychologically better adjusted, more dependable and do better in school.
- Kids who save are more likely to go to college.
Research conducted by Washington University's Center for Social Development found that children who have a savings account in their name are seven times more likely to attend college than similar youth without an account.
- Children savers have a better outlook on life.
Children with a savings account have lower stress and a greater sense of hope for the future, according to the SEED Initiative.
- Savers are more financially literate.
Students with a bank account tend to be more financially literate than those without an account, according to national financial education survey compiled by the Jump$tart Coalition® for Personal Financial Literacy.
- Children's savings accounts are free and fun.
Most banks offer no-fee, no-minimum balance "custodial accounts" for children. Many banks provide incentives for account openings and deposits, such as an increased interest rates or matching funds. Some banks give gifts, such as stuffed animals, while others have a kid-sized teller window in the branch.
Parents interested in opening a children's savings account can look for a bank in their area on the Teach Children to Save Honor Roll at www.teachchildrentosave.com. In addition, some sixty banks are promoting savings accounts through incentives in support of a new industry initiative to open 15,000 children's savings accounts in 2011 known as the Race to Save. Race to Save Banks.
Teach Children to Save is a national program that organizes banker volunteers to help young people develop a lifelong savings habit. Since the program started in 1997, some 100,000 bankers have taught saving skills to nearly 4 million students.
The ABA Education Foundation provides financial education programs and resources that help bankers make their communities better. Nearly 100,000 bankers have taught basic finance skills to about 4 million young people through participation in the Foundation's signature programs, Teach Children to Save and Get Smart About Credit. Founded by bankers in 1925, the foundation is guided by a board of bankers and is an affiliate of the American Bankers Association.
For more information, visit www.abaef.com or call 1-800-BANKERS.
SOURCE American Bankers Association