Hills Bank Savings Plan for Kids

Here are some helpful savings tips for kids.

Savings Plan Hills Bank 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 .

This Savings Plan Belongs To:

My address is:

My birthday is:

I started my savings plan on:

(date)

Save Spend Share

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 For Parents

• 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 Savings Plan Hills Bank 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 .

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

Decide together if an allowance is right for you.

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.

How I spent my allowance $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 little 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 to decide. Will you use it only for fun stuff like the latest movie release or an afternoon at the swimming pool? Or,

What will your allowance be used for?

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.

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

Chores & Jobs While some of your money comes from your parents, not all of it will. (Your parents will be glad to hear this.) You can also get money by doing work such as chores around the house or jobs for neighbors and family. 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. You might ask a neighbor if they need to have their dog walked or maybe you could baby sit 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. Show you’re responsible by doing the job well and on time.

Ages 2 to 3 • put toys away • fill pet’s food dish • dust • pick out clothes Ages 4 to 5 • make bed • empty wastebaskets • bring in mail or newspaper • 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 • clear table • pull weeds • water flowers Ages 6 to 7

Parent tip:

Let your child earn money. Doing a variety of jobs such as working a summer job, becoming an entrepreneur, or even just working for a neighbor can help your child learn about business and the value of hard work.

Gifts 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 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.

Don’t forget to say “thank you”!

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 stick on a stamp and put it in the mail

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

Hills Bank employees s Parents’ Wal

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.

Ways to Save Give your child suggestions for how to save money. For example, use coupons or utilize sale prices and rebates.

Record Keeping Encourage your child to keep receipts and a record of what they have spent.

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.

Help your child evaluate wants and needs. Make sure they understand, even in the simplest terms, that some of the allowance is for things they need, and some is for wants.

MARKET RESEARCH Teach your child how to plan purchases in advance. Encourage them to do research and wait for the right time. Demonstrate how to make unit-price comparisons, and check for value, quality, availability, repairability, warranty, and other comparison factors. Don’t assume they know what these terms mean.

Paying Bills When it’s time to pay the household bills, invite your child to watch. Show them how to use a checkbook, online banking system, or mobile banking.

Cash Only Please Allow your child to pay in cash so he gets the idea that cash and change represent hard work.

Parent Pages 9

share their successes. ll of Wisdom

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.

Lead by example. Use a regular shopping trip as an opportunity to teach. For example, while in the grocery store, demonstrate how to plan economical meals, avoid waste, and use leftovers efficiently. Also, explain what you’re doing when you write a check or use a credit, debit or, ATM card.

Help kids spend money.

Sometimes, kids get so focused on saving their money, that they don’t spend any money along the way. Help them to enjoy their money by spending some on small purchases or by buying something they’d like.

Remember to relax. It takes repetition for kids to learn, so be sure to have fun along the way!

Our family started a group coin jar to which everyone contributes spare change. When the jar is full, we’re going to spend it on something we don’t do very often that everyone can enjoy, like going to a movie. We’re learning that if you put in as much as possible on a regular basis, it grows faster. If we’re lax it will take us longer to get to the reward.

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.

Parent Pages

Make a Bank

What to do with money 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

1. Pick a container. You’ll need to have 3 separate containers to 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

for creating a cool “bank” just for you! (Hey—look over to the left!)

Safely store your cash and coins.

When your fancy 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. 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 going to love it!

amounts equally into each of the 3 containers—save, spend, and share. Keep reading to learn why!

1. 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 ! “Savings Day” To motivate my kids and get them excited about saving, I established a special “Savings Day.” I mark the date on the calendar and create a list of special projects they can complete in order to earn some extra money. Designating a day for this purpose really helped them focus and gave them extra incentive to reach their savings goals. - Hills Bank employee

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

GOAL: new bike

Set a savin g s g oal

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.

100%

$100

75%

$75

What are you saving for?

Create a chart and mark it as your savings grow,

50%

$50

then you can see your 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.

25%

$25

Parent Tip: We look over account statements and interest notices when they arrive in the mail so the kids can see the changes in their account balances based on their activity and watch the balances go up as interest is added. This reinforces the value of making regular deposits and gives us a chance to talk about the concept of earning interest on their money. - Hills Bank employee

Going 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 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! Getting mail is so cool!

Hi Kids! We’re the Penny Saver Club mascots, and you’ll see us at all the club events and at many community activities around town. We can’t wait to meet you!

PENNY BEAR

DI M.

NICK L.

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

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 use it later for something big and special.

Pay yourself first!

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 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! 2. 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 in your save container for the others. You’ll get something you want and still be managing your money wisely.

Spend your money wisely.

Remember—you can only spend what is in the “spend” container of your bank. No cheating !

Spending Limits To encourage my kids to really think about what they’re buying, and to make the point that they need to set limits, we decide in advance the amount that can be spent on a shopping trip (even if they have saved more) and we stick to that. It’s neat to see how they really think over their choices. Will they use all of the money on one item or get several less expensive items? How will they decide what to put back if they’ve exceeded their limit? Or will they pool their resources to get something more costly than each could buy separately? - Hills Bank employee

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

3. Share 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.)

Give money, time or possessions.

You can share with someone you know or someone you’ve never met. You can share with someone who

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

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

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 afternoon outdoors. Or, maybe you like animals and could help feed or groom at the local animal shelter.

Give your time, it’s FREE!

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 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

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Now what?

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

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 to put

Money is a tool.

It ’ s time to put your knowledge into action .

Be responsible and use your money wisely.

good stuff that will make your

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.

trek through the world of money even

more exciting, but most of all, smarter. Managing money is a lifelong journey, so have fun learning along the way.

Save , spend and share for life!

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 coupon per account. Not valid with any other offer. For youth 17 years and younger. Member FDIC 2019018

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 coupon per account. Not valid with any other offer. For youth 17 years and younger. Member FDIC 2019018

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

Savings Plan Hills Bank S A V E , S P E N D A N D S H A R E F O R L I F E .

Money Growth Chart

The Power of Time and Compound Interest Now is the time to start saving—

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%.

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.

Your starting age

10 20 30 40 50 60 70

$651.18

$551.67

$435.76

$304.52

$158.95

N/A

$3,432.82

$3,298.63

$3,142.35

$2,965.39

$2,769.11

$2,554.80

$2,323.68

$2,076.94

$4,628.63

$4,447.71

$4,236.99

$3,998.38

$3,733.73

$3,444.75

$3,133.13

$2,800.43

$6,241.01

$5,997.06

$5,712.93

$5,391.22

$5,034.37

$4,644.73

$4,224.55

$3,775.96

$8,415.06

$8,086.13

$7,703.03

$7,269.24

$6,788.08

$6,262.72

$5,696.17

$5,091.31

$11,346.43

$10,902.92

$10,386.37

$9,801.47

$9,152.70

$8,444.32

$7,680.42

$6,864.86

$15,298.95

$14,700.93

$14,004.44

$13,215.80

$12,341.03

$11,385.89

$10,355.88

$9,256.23

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

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 Hills Bank Savings Plan has great ideas for managing money! For more tips, at any age, check out: hillsbank.com

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