Dad, this stinks!
We all know that savings rates are deplorable. That is not news if you are an adult with any money in any type of interest bearing account. It is news if you are 10 and 7 years old.
Picture the typical day, you grab the mail and bring it in. You announce that your children have mail! They think great, a Lego magazine, or a SI for Kids, nope bank statements. So there is a little shine off the penny. But excitement none the less.
They open them to see how much money they made and I hear, “Dad this stinks!”. It does. As parents we have tried to explain banking and savings. We have done a good job at instilling some semblance of thrift in our children. But the economy is not helping them.
So here is my challenge to anyone that runs a bank or credit union. Give children an incentive to save. I understand you worry about assets bleeding when a generation moves on. I understand the competition of on-line savings vs. brick and mortar. If you want fans, hook them while their young.
Give children a reason to save. That is my challenge. Pay them an above average rate. Or the next time my boys have some disposable income I will let them act on their entrepreneurial inclinations. The Batman Lego set that came out 3 years ago is now selling for almost $300 on-line. My son wanted to buy an extra an hold onto it. I think he may have been correct.