What can saving do for you??

I remember my first piggy bank.  It was a big pink pig with a small slit at the top.  I remember getting frustrated when I was younger because once I put the money inside Mr. Piggy, there was no way to get the money out.  My mom always looked at me and said, "You are learning to SAVE your money."  Then, I didn't really understand why it was so important!! But now I realize all the cool stuff you can do if you save your money.

The most common type of bank account is a savings account.  A savings account is often the first bank account people have.  Many parents open up savings accounts for their children so they can learn the importance of saving money for the future.  Money that is kept in a savings account is also kept very safe.  Even if accidents happen such as a fire or even if the bank goes out of business, your money is STILL there.  You can't get any safer than that!

So this is how savings accounts work.  Unlike Mr. Piggy, you are able to take money out of your savings account.  However, once you put your money into the savings account you can leave it there! If you leave it there, the bank will give you interest on your money.  Interest is money that the bank gives YOU. Now this gets kind of tricky.  You will learn more about interest later.  For now, let's think about interest as a reward that the bank gives you for keeping your money with that bank for a long time. 

Now students, emergencies happen! Dad's car can get a flat tire, the refrigerator can stop keeping food cold, Jet the golden retriever may need to go to the vet, or baby brother Billy may need to go the doctor.  All of these things cost money.  But if money has been saved for a long time, these situations will be easier to handle. 

Try talking to your parents about opening a savings account.  See what they say! They might tell you that Mr. Piggy is doing a fine job.  But tell them you want to learn about interest, making deposits (putting money in the bank), and withdrawing money (taking money out of the bank.)  These big words will show them that you are really interested in learning how to save money!

Things you can think about saving up for:

• A toy you have been wanting
• An iPod to listen to when your big brother is hogging the radio
• A gift to give someone else less fortunate
• Help your parents send you to COLLEGE!!!

As you can see, saving money is very important! You can do all sorts of things with money that you have saved up. 

Now take a look at this video.  If you saved $7.50 a week, think about what you could buy.  Or how much money you could save in 2 years! How much money could you save by the time you turned 16 years old?  See how quickly money GROWS when you put it away to be saved! With a little patience and hard work, you could end up with a lots of money in your savings account.

Watch this video:
http://www.youtube.com/watch?v=A-kj7CnbLeo