Saving Grows Money

1. Saving Grows Money Letting your money make money.

2. Get started with a piggy bank Whenever you get money, you should spend some and save the rest. You can save in a piggy bank in your room. A piggy bank is good for saving for a large purchase. A piggy bank is good for saving to make a deposit.

3. Open a Bank Account When your piggy bank gets heavy, open a bank account. You will need your parent’s help at the bank. Deposit some of your money in a savings account. Put the rest of the money back in your piggy bank.

4. Earn Interest on your savings. Unlike you piggy bank, your bank pays you for trusting them to save your money. You are paid interest on the money you deposit. The bank will tell you every month how much interest you have earned.

5. Deposit Regularly Growing your money means adding to your bank account on a regular basis. You may want to make a deposit whenever your piggy bank gets heavy. You should plan to deposit some of your money every month.

6. Read the monthly statements. Now that you have a bank savings account, you have to set aside time every month for reading and checking your bank statement to see if it is correct. You will want to check off each of your deposits. Then you will want to check off any withdrawals. This is called “Reconciling your bank statement”. You will be doing this once a month for the rest of your life. Learn to enjoy it.

7. Set Savings Goals • Now what? You have a bank savings account. You are making regular deposits. What next? • Plan what to do as your savings account grows. • Buy something you want. • Give someone a gift. • Invest in making more money.

8. Need cash? Withdraw. If you need or want to spend some of your savings, you can withdraw some of the money from your account. Your parent needs to be with you when you withdraw money from your savings account. You and your parent will have to sign a withdrawal slip saying that you took the money out of your account. Always check your monthly statements for the withdrawals. If you didn’t make them, tell your parent.

9. Maintain a Minimum Balance Set a minimum balance for your account. Check into your bank’s rules for small and juvenile savings accounts. Some banks require you to keep $100 in the bank to avoid charges. Never let your balance go below your minimum balance. Withdraw amounts so that they don’t go below your minimum balance.