Hills Bank Savings Plan for Kids

S A V E , S P E N D , A N D S H A R E F O R L I F E

Your adventures in the world of money start here!



S A V E , S P E N D , A N D S H A R E F O R L I F E

Conversation Starters

* When is buying things on sale a good idea? When is it a bad idea? * How often do you hang out at the mall or a favorite store with no particular purchase in mind? How does that affect your buying habits? * Is it easier to name your favorite store or your favorite charity? Why? * How much does a vacation cost? * What is your most treasured possession? Why does it bring you so much happiness? * What are you saving for? * How do your friends influence your shopping decisions? Is their influence positive or negative and why? * How many and which things do you own that encourage or require you to keep spending more money? (example: video game system) * Which is most important to you: saving, spending, or sharing?


Where does money come from? (And how do I get it?) . 5 Allowance . 5 Chores & Jobs . 7 Gifts . 8 Parents’ Wall of Wisdom. 9 Activity: Make a bank. 11 What to do with money . 11 Save . 12 Spend . 16 Share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Now what? . 19 Money growth chart . 22 What’s inside


S A V E , S P E N D , A N D S H A R E F O R L I F E

Where does

money come from? (And how do I get it? )

You can get money from a lot of places. Some of it you earn and some is just a gift for being a great person. We’ll focus on three ways you can get money: allowance, chores and jobs, and gifts. Allowance

One way to get money is for your parents to provide an allowance. This is an amount of money they give you at a set time. You’ll have to decide together how much and how often this happens (because they aren’t going to give you the $100 you want every day). What we mean is you might get $10 every Monday evening or $40 the first Saturday of the month.

Decide together if an allowance is right for you.

$25 movie , popcorn , and candy to share with my friends $5 candy bar and soda at the game $15 favorite music from iTunes What do I have to show for my $45? iTunes music-that’s it. Hmm, maybe I should think about this a little more . . .


A lit le more about your allowance If you spend all your money on movies, popcorn, and pop, you might run out before the next pay day. (Warning— your parents might not give you more!)

Your allowance is a way for you to learn what you can and can’t do with your money. That is something for you and your parents

What will your allowance be used for?

to decide. Will you use it only for fun stuff like the latest movie release or an afternoon at the swimming pool? Or, will you also need to buy your lunch in the school cafeteria and food for your pet hamster? You’ll all be happier if you decide on these things in the beginning. (Check out the save and share sections as well before you start spending!)

Remember , your allowance is to help you learn how to manage money -not just how to spend it. Your parents will help you make good decisions on how to use your funds.


You’ll need to find someone who will pay you to do these jobs. make $$ Ways to

Chores & Jobs While some of your money comes from your parents, not all of it will. (Your parents will be glad to hear this.)

Ages 2 to 3 • put toys away • fill pet’s food dish • dust • pick out clothes

You can also get money by doing work such as chores around the house or jobs for neighbors and family.

Show you’re responsible by doing the job well and on time.

Ages 4 to 5 • make bed • empty wastebaskets • bring in mail or newspaper

Ask your parents if there are jobs around the house that you could

do to earn some money, such as taking out the garbage and recycling, mowing the lawn, or cleaning bathrooms.

• clear table • pull weeds • water flowers

You might ask a neighbor if they need to have their dog walked or maybe you could babysit their young child. Whatever the job, be sure to stay organized! Show that you’re responsible by doing the job well and on time. Mark your schedule on a calendar and hang it in a place where you’ll see it often, like your bedroom wall or the refrigerator.

Ages 6 to 7 • sort laundry • sweep floors • set and clear table

• pack lunch • rake leaves • clean bedroom

Ages 8 to 9 • load dishwasher • put away groceries • vacuum • wash table after meals • put away own laundry • cook simple food (such as toast) Ages 10 and up • unload dishwasher • fold laundry

• clean bathroom • wash windows

• wash car • mow lawn



One more way to get money is...drum roll, please...as a gift! Yes, that is right, a present given to you, and only you, to be used however you like. What an awesome idea! Three cheers for the guy who thought of it— hip, hip, hooray! This might be when you have a birthday and your grandparents send a card in the mail with some cash inside. Or, maybe you get a perfect score on your weekly spelling test and your dad rewards you with some green.

Then, you start thinking, “What can I do with my money? I want to go to a movie, buy new comic books, get a pop at the

Don’t forget to say “ thank you “ !

gas station...” Hold it right there, don’t move another muscle. You want to be sure you say Thank You! It is so important to make sure the giver knows you appreciate the gift.

My daughter sells Girl Scout cookies and I encourage her to write a “thank you” note to those who buy cookies. Last year, my cousin was so impressed that she took the time to call and thank Katie for the “thank you” note. It was a great confidence booster for Katie , and reassured her that showing appreciation is an important thing to do! - Rachel K. , Hills Bank employee

Thank You Card Writing 101

• say Thank You! • tell them how excited you are about the gift • write what you did with the money • hand deliver or slap on a stamp and put it in the mail



Parent Pages 9

EARLY BIRD The earlier you start saving the better because compounded interest over time multiplies your investment. Keep this in mind for your retirement and your child’s college savings.

Each parent may have different experiences, values and beliefs about money. Parents should talk about these feelings and opinions and establish a consistent

approach to teaching children about money.

This is essential to the healthy development of the children.

– David T., Hills Bank employee

– Rachel K., Hills Bank employee

WAYS TO SAVE Give your child suggestions for how to save money. For example, use coupons or utilize sale prices and rebates. – Bonnie S., Hills Bank employee

The BIG Picture Encourage your child to look at the bigger financial picture. For example, a movie involves more than just the price of the ticket. Movie ticket $9.00 Gas (about 2 gallons) $8.00 Popcorn $5.00 Pop $3.00 $25.00 plus time and energy Explaining the bigger picture will make them aware of all the factors. – Luke B., Hills Bank employee

Parents should show their kids that they can’t afford everything they want either. It is good for kids to see that parents have to say “no” to themselves too. This could be brought up while window-shopping together.

– Joel K., Hills Bank employee

Parent Pages 10

1. Pick a container. You’ll need to have 3 separate containers to Make a Bank keep your money divided. Use an item found at home, or buy one at the store. Here are some ideas to get you thinking: peanut butter jars, facial tissue boxes, or milk cartons. 2. Decorate with style. Break out the paint, stickers, construction paper and more! Use whatever you like to give your bank style. 3. Create an opening. Make a slot in the top of each container large enough to let your money in, but small enough that it can’t spill out. Ask an adult to help you. 4. Deposit your money. Listen carefully because we have a special way of doing it. Divide the amounts equally into each of the 3 containers— save , spend , and share . Keep reading to learn why!

What to do

with money

Safely store your cash and coins. When your awesome new bank is ready to store your cash and coin, start thinking about what you’ll do with your money. The options are endless, but if you try to do all of them you’ll be out of money in a flash! Plus you may not use it the best way possible. Now that you have money, where do you put it? You could put it in your shoe, but that might slow you down during gym time and pinch your toes. You could put it in your pockets, but it could get lost in the laundry. Why not make a special container that you keep in your room or other safe place? Check out our ideas for creating a cool “bank” just for you! (Hey—look over to the left!)

Don’t get dizzy trying to figure this out, we’ve got some tips to help you save for later so you don’t run out, get fun stuff for yourself now, and even be able to share with others. We call this the 3 container method and you’re gonna love it!


Save Saving is super important, so

listen up! You might be thinking to yourself, “Why save?” Actually, there are quite a few reasons, but we’ll just name two. First, the most basic reason: some stuff you want costs more than you have to spend and will require you to save a little each time you earn or receive money. Saving will assure you have money for things you want in the days, weeks, and years to come.

The second reason—to avoid debt—is kind of hard to understand. We’ll tell you a little, but you

may have to ask an adult to help you out. Debt means you owe more money than you have. You can steer clear of this by following one important rule: only spend what is in your spend container. No cheating!


What are you saving for? It might be something big like a new bike, going to college, or a car. Saving can be hard to do, but if you set a goal it will be easier. Set a savin g s g oal

GOAL: new bike

$75 $100

50% 75% 100%

What are you saving for?

Create a chart and mark it as your savings grow, then you can see your

$25 $50

progress. Another good motivation is to look at a picture of the item you’re saving for. Simply hang a picture on the wall of your room, so you see it every day when you get up.



Goin’ to the bank We’ve already talked about putting money in your 3 container bank , but soon your bank will be filled with all the money you’ve been saving . Go ahead and pat yourself on the back! You’re doing great! It’s time to bring your money to Hills Bank. Ask an adult to take you and the money in your save container to your nearest Hills Bank location. It’s time to make a deposit into your account. It’s time to bring your money to Hills Bank.

If you don’t have an account yet, ask about joining the Penny Savers Club or Go! Program and open your account. (Get started with our coupons on page 20!) Your money will be safely held at the bank and you’ll receive fun

Getting mail is so cool !

newsletters in the mail. Also,

watch for your bank statement to come in the mail. It will tell you how much money is in your

account and other good stuff. Oh yeah—getting mail is so cool!


Maybe you are thinking that it won’t be very fun to save money, after all, that means that you don’t get to spend it right now. Well, think of it as “paying yourself first.” Set aside a portion of all the money you earn and put it in the save container of your bank. You’re not losing the money, you’re just putting it in a safe place so you can

P.S. You should also know that Hills Bank pays you something called interest. Interest is a little bit of money the bank adds to your account throughout the year, so your money

Pay yourself first!

use it later for something big and special.

is actually growing! Cool, huh? You can also invest your money in stocks, bonds or mutual funds. Ask a trusted adult for advice on which to choose. Investment products are not a deposit, not FDIC insured, not insured by any federal government agency, carry no bank guarantee, and may go down in value.


Now develop a plan to reach your goal, pay yourself first, and keep track of what you’ve saved, and you’ll be making that big purchase before you know it! Spend The spend container of your bank holds the money that you can spend on whatever you want. So, here comes a new question—how do you decide what to spend it on (because you won’t have enough money to do everything—bummer!)? Make a

wish list of things you’d like to spend your money on. Choose which item to purchase, and set aside money

Spend your money wisely.

in your save container for the others. You’ll get something you want and still be managing your money wisely. Remember—you can only spend what is in the “spend” container of your bank. No cheating!



We’ve saved the best for last! The share container of your bank is the most exciting because it is the money that you will give away. (Yes, you’re reading that right.)

Now, when you want to share , it doesn’t have to be money. You can also share other things of value—your time and your possessions. Sharing time is a great gift to give because it’s free. You could give a wheelchair ride to a nursing home resident who would enjoy an

You can share with someone you know or someone you’ve never met. You can share with someone who lives in your neighborhood or

Give money , time , or possessions.

afternoon outdoors. Or, maybe you like animals and could

someone on the other side of the planet. You could give to a charity, your school, or a place of worship, or give to whatever cause you believe in. Check out our list below for ideas to get you started!

help feed or groom at the local animal shelter.

Share with others Donate your money

Donate your time

* Purchase school supplies for someone who can’t afford to buy them * Compassion International: sponsor a child from another country who lives in poverty

* Buy Christmas presents for a family in need * Help people in your community through United Way or a local Hospice program * Your church/temple/parish

* Plant flowers at your neighborhood park

* Collect pop tabs for the Ronald McDonald House to benefit families of hospital patients


Possessions can be shared when you have something of value that another person needs.

For example, when you grow out of your clothes, donate them to a homeless shelter. When you share , you

Give your time . . . it’s FREE!

can make someone’s day brighter by helping those less fortunate who may not have what they need, like food, clothes and a warm bed. Best of all, sharing

with others is the right thing to do and it makes you feel great!

Make someone ’ s day a lot brighter!

* Donate a used book or DVD to your local library * Give clothes or toys you’ve outgrown to the Salvation Army ...the list goes on! Donate your possessions

* Play bingo with residents at a nursing home * Make a card for someone in the hospital * Read books to or tutor younger kids at school

* Rake leaves in your elderly neighbor’s yard * Grow your hair long, then cut and donate it to

Locks of Love or a similar organization


Remember—money is a tool you can use to help others and yourself. Be responsible and use it wisely. If you have questions along the way, be sure to ask a trusted adult. They know lots of good stuff that will make your trek through Money is a tool.

Y ou’ve just begun your adventures in the world of money. It’s fun and full of possibilities. We’ve taught you where you can get money and what you can do with it. Now, it’s time It ’ s time to put your knowledge into action . to put that knowledge into action. We know you have tons of cool ideas for earning money and even more awesome ideas for how to save , spend , and share it.

the world of money even more exciting,

Be responsible and use your money wisely.

but most of all, smarter.

Managing money is a lifelong journey, so have fun learning along the way.

Save , spend , and share for life!


Limit one per customer. 2012108 $ 5 $ 5

Present this coupon when you open a new Penny Savers Savings, Go! Checking, or Go! Savings Account and we’ll credit $5 toward your opening deposit.

Hills Bank and Trust Company 1-800-HILLSBK • HillsBank.com • Member FDIC

Hills Bank and Trust Company 1-800-HILLSBK • HillsBank.com • Member FDIC

Present this coupon when you open a new Penny Savers Savings, Go! Checking, or Go! Savings Account and we’ll credit $5 toward your opening deposit.

Limit one per customer. 2012109

S A V E , S P E N D , A N D S H A R E F O R L I F E

S A V E , S P E N D , A N D S H A R E F O R L I F E

The Power of Time and Compound Interest Money Growth CHART

Now is the time to start saving— don’t wait another day. If you do wait, you’ll miss out on the great benefits that time gives you and your money. Here is an example of the power of compound interest when you start at a young age.

We’ll assume a few things: 1) you receive an allowance of $1 per week for each year of your age until age 19, 2) you invest 1/3 of your allowance each week, and 3) your contributions grow at an interest rate of 3%.

Your starting age









10 20 30 40 50 60 70

























































The sooner you start saving and investing, the better off you’ll be. So don’t just stand there— get moving!


Josh saved his money for a new bike.

Michael saved for a cool new MP3 player loaded with his favorite tunes.

Hills Bank and Trust Company The Hills Bank Savings Plan has great ideas for managing money! For more tips, check out HillsBankLifeStages.com.

© 2012 Hills Bank and Trust Company. Member FDIC.

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