SmartyPig

I remember as a kid, my parents emptying their pockets at the end of the day and putting all their spare change in an old five-gallon glass water jug.  I too deposited all the coins I could find and watched eagerly as the container inched closer and closer to the top. When the time came, we’d empty the jar and take all the change to our local bank. The money was divvied up between accounts, but I got to keep a certain percentage of it to spend however I liked. Usually that meant a new game, a Barbie or a movie. But having waited so long in anticipation for the coins to reach the brim of the jar meant that I really thought about how I was going to spend my percentage of the money. 

It is a sentiment that has stuck with me, and it makes me wonder about today’s youth and their spending habits. Are they thinking of how they’re spending money and where it’s going? According to Experion, 96% of college seniors are carrying credit cards and will spend nearly twenty-five cents of every dollar paying back debt. Young Americans now have the second highest rate of bankruptcy behind those ages 35-44. Why experience the painful effects of debt when avoiding it all together can be reality?

Though dealing finances as a young adult can be difficult, learning the value of a dollar at a young age is crucial, especially now during these tough economic times. Share your SmartyPig goal with your children. Make them a co-owner on your account and help them set up a goal. Not only will they be saving money with the pig but they’ll also be earning interest, which is an important and educational piece all in itself. They’ll be able to watch the pig fill-up each time money is put into the goal excitedly waiting until they’ve reached their target.