There are all kinds of expenses that can pop up for a family, from unexpected car repairs to a planned family vacation. That’s why family savings are so important. Having a savings account for the family doesn’t have to just be money that’s saved for emergencies either. It can be saved for special treats and big family purchases too! But how do you get started? Here are three tips for making saving as a family easy.
1) Make it Automatic
One of the easiest ways to get started with a family savings account is to arrange automatic deposits with every paycheque. Even a few dollars from each cheque can add up quickly in the course of a year and having that money continuing to grow each month will help motivate the family to add extra savings all year long.
2) Get the Family Involved
A family savings account shouldn’t just be something that parents contribute to, since it provides a great opportunity to teach kids some lessons about managing their money. Start by putting a jar in the house and let family members toss in their spare change each day. Once a month, deposit the money into the family savings account. Just remember to get input from the whole family on how the money will be eventually spent to keep kids interested in the process!
3) Find Your Perfect Account
Not all savings accounts are created equally and taking the time to find the best one for you can pay off over time. Take the time to compare savings accounts around different criteria to be sure that your account is the best one for your family. For example, a savings account that you plan to access quite frequently will likely have a lower interest rate but will also carry lower fees for withdrawals and transactions. A longer-term savings account may restrict access to your money somewhat but make up for that with a higher interest payout.
Having a savings account ready for a rainy day or for a special family expense is beneficial for so many reasons. It gives a family a little extra security, helps teach and enforce important money management skills and eventually will let your family enjoy extra fun together. And getting started really is easy; just find the best account for you and add to it when you can. You’ll be glad you did when the time comes to take that luxurious family vacation paid with your family savings!
one tip is when searching around for the perfect account, make sure they’re covered by CDIC (for charter banks) or a similar regulatory body for credit unions. This will protect your account in the (rare) event of a bank failure.