Savings for All

Don’t you want that brand new iPhone or Xbox Series X when it comes out? Well, how can you buy these expensive items if you do not have enough money saved up? You can ask mom or dad, but what if they happen to say no? The key to being able to make large purchases like these are embedded in saving. Saving money is not only a good financial habit that consists of putting money away somewhere, but also making sound financial decisions when banking. More specifically, opening a savings account can be a useful tool to earn interest and benefits over time. Saving means putting money aside for future use, banks and other financial institutions offer incentives for people to keep their money in a savings account. These incentives are referred to as earning interest. In other words, banks pay interest on money put into savings accounts because the bank can use the money to make loans to other customers. So basically, by putting your money away in a savings account in hopes of buying that new iPhone or Xbox Series X, you will have more than what you started with. However, it is important to know that the amount of interest earned depends on several factors, including the type of savings account, which bank has the account, and how long the money is kept in the account. There are also many different types of savings accounts that can be opened, so it is crucial that you research to see which is the best fit for you. At the end of the day, planning well and putting your money into a savings account can be an extremely beneficial financial decision. 

Now that we’ve talked about how important saving money in your savings account is, let’s talk about how to open a savings account. Now I’m sure you’re thinking, “Saving sounds great and all, but how in the world do I open a savings account at this age?!” Actually, the answer is quite simple. Kids just like you can open a savings account at a bank or another financial institution as long as a parent or adult guardian is present.  All you have to do is know your Social Security number and have some money to deposit! Finally, your parent or guardian will co-sign the account - which means that they will be sharing responsibility for the account. Boom, it is as easy at that! Now, the road to saving for your Xbox Series X, iPhone, or whatever you may desire just got that much easier! 

We have talked about saving money and even how to open a savings account, now let’s jump into using an actual account. There are procedures called deposits- to put money in, and withdrawals- to take money out of a savings account. Although quite simple, these procedures are important and need to be done with caution. To make a deposit, or put money into the account, you need to fill out a deposit slip. Once you fill out this slip, all you have to do is hand it to the bank teller and the rest is all handled. The procedure for withdrawals, or taking money out, is very similar to that of a deposit. All you have to do is fill out a withdrawal slip, sign the slip while at the bank, and show your ID. After that, the money towards your new gadget is all yours and ready to go! Pictures of these slips are also available below for a reference of what you may need to fill out.

Savings deposits can also be made by using an automated teller machine, or ATM. You can even check with your bank to find out the age requirement for using an ATM. ATMs are a convenient and simple tool to use and are found in banks and many other convenient locations all over the place. Many are also open 24 hours a day! When a bank gives you an ATM card, they also give you a personal identification number or PIN. This PIN is like your personal secret code that only you should know! If someone else knows it, they may be able to take money out of your account…so don’t share your PIN with anyone! Before you deposit a check, you’ll need to write your signature on the back. This signature goes above the line on one end of the backside of a check and is also called “endorsing the check”. This alternative method of depositing money into your account can be useful if a bank is closed or you may be short on time. Either way, depositing and even withdrawing money from a savings account is fast and easy. 

Lastly, we will talk about how to keep track of your savings account! While saving up to eventually get that new iPhone you’ve been wanting, it is important to have a record of all your withdrawals and deposits along the way. All banks keep track of their customers’ savings accounts, however, it’s your responsibility to keep track of all transactions. It’s essential to make careful calculations and make sure each deposit or withdrawal is correctly recorded. When you open a savings account, the bank provides you with a savings account register to track your deposits and withdrawals. A sample savings register is to the left and can be used to visualize how to record your transactions.

Now that you have learned how to open a savings account, use it, and also keep track of it, the path to saving for that new iPhone of Xbox Series X just became that much easier. It is crucial to remember that saving is a financial tool used to put money away and earn over an allotted amount of time. So next time you think of that expensive thing which you want, think about saving the right way! See you next week!

Resource Link: https://youth.handsonbanking.org/wp-content/uploads/2019/08/InstructorGuide_MiddleSchool.pdf

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