Credit unions encourage habit of saving in younger children

It may start small with a ceramic ‘cash cow’ or pickle jar, but encouraging your child to save is where the smart money is, according to the Irish League of Credit Unions.

And to help get the message across, ILCU is offering its own words of wisdom as part of GR8 Savers Week, designed to encourage the kind of habit no parent could frown upon — honing a sensible approach to money from an early age.

The top five tips on offer from ILCU include:

- Teach your children how much things cost;

- Give your child some modest pocket money and help them manage it by putting some away in savings;

- Explain that they need to make choices about how to spend their pocket money;

- Show that sometimes you have to wait to get something you want — and save hard for it.

Parents are also encouraged to let kids join in on the savings experience by bringing them “to your local credit union” to open a savings account “and allow them to lodge part of their pocket money every month themselves”.

The message has obvious benefits for both the child and the credit union movement.

Kieron Brennan, ILCU CEO, said it was “incumbent among all of us” to ensure our children know not just the value of money but also the importance of understanding how saving works.

“There is a new social and financial reality in Ireland — many of us are struggling to manage our finances and we have all learnt a very hard lesson about the value of money and the importance of saving for a rainy day, no matter how small the amount,” Mr Brennan said.

ILCU is happy to help in any attempts to restore economic stability, including helping parents “give their children a solid financial education from a young age”, Mr Brennan said.

GR8 Savers week runs until May 18.