Kids Savings Account

September 24, 2013 in Innovation

MONEY MATTERS: Nicole Hilton is urging local kids to start saving for their future.

BRIGHT-EYED high school graduates bursting with plans to make their mark on the world are all too often deterred by one minor problem – cash.

Ready to travel, buy their first car, start higher education or move out of home, the teens are faced with their first taste of “real life” money problems.

Maleny Credit Union Business Development Officer Nicole Hilton knows the importance of saving money and hopes to teach local students to be cash savvy.

Maleny Credit Union has developed a 52-week money challenge as part of their Brighter Futures program that encourages students to save.

The concept is simple. Over a 52-week year students put money into a savings account – $1 in week one to $52 in week 52 – to accrue a balance of $1378 by the end of the year.

Multiply that by five years of high school and they have saved more than $7000.

“A lot of young kids are consolidating credit card debt and sometimes more than one credit card, which is a direct cause of not being given the skills to save and budget in the real world,” Mrs Hilton said.

“So we thought we have to teach the kids to take some responsibility.”

Mrs Hilton said parents and students could chip in money towards the savings account and could choose an amount that worked with their budget.

She said MCU encouraged students to come in and learn how to plan a budget.

“We saw a need to get our kids learning to save, budget and live within their means,” she said.

“It’s all about a brighter future.”

Maleny Credit Union hopes to work alongside local schools and clubs to help kids start saving.