Tuesday, November 06, 2007

Start Saving...Mee Mee

I came across a bank today.
A bank dedicated to teaching children about money.
It's called Young Americans Bank.

I think I'm going to have to take Chase down and open an account for her.
And then pay her a penny (I knew pennies were handy for something) for her art work, or for helping out around the house (today she cleared her table after her meal).

Following are the bank's customer statistics:

Number of Total Accounts: 14,762
Number of Depositors Reached Since Inception: 54,417
Customers in all 50 states and 9 foreign countries

Savings
Number of accounts: 12,363
Average balance: $800
Average age: 11
Most common reason for saving:
College, Vacations, iPod, X-Box

Certificates of Deposit
Number of accounts: 969
Average balance: $1,388
Average age: 12
Most common reason for saving:
College, Car

Checking
Number of accounts: 1,430
Average balance: $510
Average age: 16
Average check written: $35
Most common reason for having a
checking account: Experience
Accounts used most often for:
Entertainment, Shopping, School Fees

Loans
Number of Loans: 27
Average Balance: $2,394
Average age: 17
Most common reason for borrowing:
Car, Auto Repairs, College Textbooks

Credit Cards
Number of Credit Cards: 248
Average Balance: $143
Most common reason for having a
credit card: Experience

1 comment:

amwurst said...

We found an excellent article on allowances in the business section of the Sunday paper a couple of months ago. To encourage savings and an understanding of money we implemented the plan. The kids have chores with distinct amounts assigned to each. (They get a total that is the same as their age so on their birthday they get a new chore and a raise).

Of the money they currently receive $1 goes to savings each week (WaMu comes to our school so they can deposit it there each week) and 10% must go to church or a charity.

The money is theirs to lose. So if a chore is not done they have to pay us for it. Also right now since school is their biggest responsibility that is part of their pay. Any day they are not ready for school on time they pay us. I picked that mainly b/c my biggest headache is telling them to get their backpacks and shoes. My son had to pay up twice then it suddenly became much easier to get him to school.

The article also suggested paying them monthly when they get older since they have bigger wants. It's been great for us. Last night they wanted to play the Claw game at a restaurant. We knew it was a waste of money, but it was a lesson they could learn for themselves. We let them play, they won nothing, and my daughter admitted it wasn't 50 cents worth of fun. It also avoids gimmes at the store. I simply say if you really want it then you can pay for it. Suddenly they can distinguish something they kind of want from things they REALLY want.