Kid-friendly personal finance tips from a former banker

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This is a guest post by DiAna Kelley, founder of the Giving Me Life Foundationa nonprofit organization that teaches strategies about monthly budgeting, credit, and financial retirement to teenagers and young adults in order to create healthy financial lifestyles.

Below, DiAna focuses on tips about earning money for things they are good at, the importance of saving early, and talking to their parents about opening an account so that they can see their money grow. 

So you and your student are getting ready to think about high school and all the excitement it may bring. High school is a once in a lifetime experience for many students. Many will begin to think about school dances, extracurricular activities, colleges, but what about saving money?

It’s never too early to think about saving and budgeting money. With all of the costs associated with school activities and the rising cost of college, many students and parents are thinking about the best ways to save for the costly years ahead. Here are some tips to help you and your students save money for those expenses.

1. Look at what your student is good at and help them earn money for it. Is your child good at babysitting, dog sitting, mowing lawns, tutoring? Whatever gifts they have can help them earn money. The best part is your child can set their own hours and prices for doing the things they love.

2. Get the Greenlight card and app. The Greenlight card is an excellent way to teach students about budgeting money and managing an account using a debit card. It is also a great tool to help parents monitor how and when their students are spending their money. As parents you can transfer money onto your child’s Greenlight card instantly anytime. You can also monitor how they spend, approve or decline requests for money from your kids, and even determine which stores they can use their Greenlight card for purchases.

3. Set a goal to save money each year you are in school and stash it away into a savings account.

4. Learn how to create a budget. See if your student can write down all the things that they would need money for during the school year and the cost of it. Then total up the amount you would need for that year. Your student may need an adult to help with their budget. Once you know how much you need for the year, then you can divide that amount over 12 months and set aside an amount you have to earn for all of your expenses.

Let me give you an example: If all of your student’s expenses for that school year comes up to $500, then divide it by 12 which is about $42. So if your student completes chores around the house and charges your neighbors and friends for doing what they are good at, your student could easily get $42 a month. Say you rounded that amount up to $50. Then your student would have enough money to cover any expenses and save money into their account. It may take some practice, but trust me your student will see their money grow.

Stay tuned for more personal finance tips from DiAna to come!

Interested in Greenlight? Download and sign up here.

More about the Author:

DiAna Kelley, a native of Boston Massachusetts, has over 10 years of experience in retail banking and financial services. Working in the area of banking, she saw a great need to teach teens how to understand budgeting and money management. Her passion is to teach students money management skills early, so that will have the tools to make smart financial decisions in their future. She uses her combined knowledge and experience to provide resources and host workshops in the community through her nonprofit organization Giving Me Life Foundation, Inc.

More about the foundation:

Giving Me Life Foundation, Inc. is a nonprofit organization that teaches strategies about monthly budgeting, credit, and financial retirement to teenagers and young adults in order to create healthy financial lifestyles. For more information about this organization please visit www.givingmelife.org.

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Greenlight Kids Save 3 Times More than the Average U.S. Household

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As the average U.S. household debt continues to rise, Greenlight families are seeing a different trend. We’re thrilled to announce today that Greenlight kids have saved more than $1 million dollars using Greenlight Savings, The Educational Savings Account for Kids. Official story here. With the average U.S. household savings rate at 2.8%, Greenlight kids are saving a whopping 8.4% of their money on average. That’s triple the national average!  

The Educational Savings Account for Kids allows kids to see real growth in their savings account, how interest works over time, and the impact of spending versus saving, which helps them understand the importance of saving for the future. Not only that, but parents can set their own interest rate and pay the interest automatically within the child’s Greenlight Savings. The national average interest rate for bank savings accounts is 0.08%, making it difficult to educate kids on the value of savings. The average interest rate set by Greenlight parents is 19.84% enabling kids to see the benefits and importance of savings almost immediately.

Since April, Greenlight kids have more than quadrupled the amount of money in their savings accounts. We are proud to continue offering new features like the Educational Savings Account for Kids as an option that is convenient for families and offers flexibility for each family and each child’s unique needs. We are helping parents teach their kids to be smart about money and set them up for success financially, and are hopeful that impact can change the financial course for a new generation.

We’re on a mission to help parents raise financially-smart kids and are thrilled to see so many families using Greenlight Savings to teach their kids the importance of saving. But, we’re not done just yet. We have several new features that we’re excited to release in the near future. Stay tuned!

 

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Want your kids to make better food choices? Check out how one family is using Greenlight to help!

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Kids are tough. Shopping for foods they’ll eat, making lunches, getting them to do their homework, getting them up and out the door on time, and getting them to put down their tech and go outside can be challenging. One of the biggest challenges we as parents face when it comes to kids is getting them to eat healthily.

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