Financial education has been linked to lower debt levels, higher savings, and higher credit scores as children mature into adulthood.
That’s why Security Federal Bank (SFB) is helping young children learn the importance of saving.
The bank is rolling out the next generation of its longtime program, formerly called the Looney Tunes Kids account. $uper $avings is the new branding and features the $uper $avings Bunny.
“Our youth savings program has helped generations of local kids start strong with smart saving habits,” said Phil Wahl, President at SFB, in announcing the program. “The $uper $avings Bunny adds a fun, personalized touch to a program that’s still built on the same values.”
Dr. Wendy Habeggar, a Senior Lecturer in the Hull College of Business, told ABD that a program like this can set up children for a deeper understanding of finances as they grow up.
“Financial literacy is the gift that keeps on giving,” she said. “I think you can’t start early enough. It really opens the door to a lot of life lessons, but it just happens organically. I think the financial industry has realized that we have a lot of youth coming up.”
Habeggar said she has students in her college classes who lack a basic understanding of how to manage their finances.
“I have some students now, they’re 18, they’re incoming freshmen. They do not have checking accounts yet. And I told them you need to go get one. You’ve got to get one,” she said, adding that one student’s parents wouldn’t let her have one.
“I told her, I understand you still live at home, so you have to follow their rules, but explain to mom and dad that you’re in the process of preparing to be employed one day, and your employer will require you to have a checking account so they can pay you via direct deposit.”
Prior to joining SFB, Ashley Thomas, the bank’s VP/Director of Marketing & Community Relations, had an advertising agency and saw the impact a lack of understanding about banking can have on students as they grow up.
“I would hire interns from high school, and I would give them deposit slips and say, ‘Hey, can you add up these checks and just write it on the deposit slip and run it to the bank for me,’ and they had no idea what to do,” she said. “If you don’t teach your kids at a young age, they’re never going to learn.”
The $uper $avings program is for children aged 11 and younger. It creates a savings account requiring just five dollars to open, and SFB will add one dollar to the opening deposit.
“You have to prepare kids for money management, but you have to make it simple and fun,” Thomas told ABD. “If you don’t make it a part of their everyday life, and simple and fun, there’s no way to actually get the kids involved.”
Habeggar said, in addition to instilling an understanding of finances at an early age, the program will also serve to make them comfortable with banking in general. She said that it is vital to address a distrust of banks.
It also helps the bank cultivate what she called customers for life.
“This is a great business decision because you are actually molding the next generation of customers,” she said. “I think it’s a win-win, because the kids will use that bank, because mom and dad use that bank. It’s like legacy. For institutions that don’t do it, it’s a missed opportunity. You are recruiting future customers, but you’re also helping society more than you can imagine.”
A $uper $avings account has no monthly service charges or minimum balance required, and interest is paid on the balance.
SFB also has a Young Savers program for students aged 12-to-17. It is a $10 minimum opening deposit and waives monthly fees while paying a competitive interest rate.
Learn more at: www.securityfederalbank.com/personal/savings/youth-savings-accounts
Thomas said the programs are part of the bank’s commitment to the community.
“These kids’ accounts aren’t full of zillions of dollars. They’re mainly about helping the kids and building their confidence, and teaching them.”
