Tell your child to start saving. The earlier he or she begins saving, the more interest will accrue over time. While socking away money for the future might seem difficult as he or she tries to find some financial footing, putting away just a small amount each month can give your child a head-start on long-term savings.
Goals Over Time
Savings goals should change as you age. After settling into a career, establish a steady amount of funding for savings. It's a good idea to set aside separate savings accounts for different goals, including an emergency fund with living expenses for up to six months. If you aren't invested in a 401(k) at work, also establish savings for your retirement.
Should I Save for My Child's College or My Retirement?
Of course, do both if you can, but don't shortchange your retirement savings in the process. You may be able to find other opportunities to fund your child's education, including grants and loans, but you will likely have fewer options when it comes to retirement.
Choose to Save
The Employee Benefit Research Institute's Education and Research Fund offers the following tips on saving money:
- Pay yourself first — Set aside a certain amount of each paycheck to be placed in a savings account.
- Try direct deposit — If your employer offers this service, have some of your paycheck directly deposited into your savings account. This way, you will be less likely to miss the money and even less tempted to spend it.
- Make it difficult to access if necessary — Having access to your savings account at the ATM through your debit card can be convenient. However, if you're likely to make withdrawals too frequently, consider skipping this option.
Savings Options
Regions provides a wide variety of savings alternatives that can fit your needs. For new savers, we offer the Regions LifeGreen Savings account that pays you a bonus to create an automatic savings plan. For savers who have accumulated significant balances, we offer competitive money market and CD accounts that may be a good fit for your needs. For more information about these accounts, talk to your Regions banker or visit our Savings and CDs page.