child saving

Teaching children good money habits

The school year is underway, and students are back in the classroom. When we think of school, we think of what our kids will learn to set themselves up for success as adults. Among these things is understanding finances and managing money.

“There are lots of life lessons to pass on to your child, but teaching financial literacy is one of the most important,” said Rod Zechman, AVP and Hummels Wharf branch manager.

Most kids love money – whether that’s playing with pretend money, counting out pocket change, or spending it. It’s important to teach them from an early age that money isn’t just for spending – they should be saving it, too.

“Simply putting money into a piggy bank or savings jar teaches a child how to save,” said Rod. “When they take the money out, it teaches them the connection between their money, and spending and saving.”

Your child may have wants and they may not understand that the items they want cost money. This is a great time to talk about saving and budgeting. Encourage your child to start saving for something specific – like a toy or game – and make a plan on how they can get that item.

Rod shared one of the first steps to take when setting a budget is to make a list of important needs and prioritize them. Next, determine your income – for a kid, this may mean allowance or money they’ve received for a birthday. Another step is to set some money aside for a rainy day or an emergency fund – or something that your child really wants to save for, like that $60 video game.

“Have your child set realistic financial goals, even if they’re small, so that they can build healthy financial habits that are sustainable for the long term,” he added.

To help your child stay on track with their budget, you can create and maintain a budget using free apps on your smartphone or mobile device. Visit your device’s app store to find an app that works for your situation.

Lastly, the most important thing is to review and evaluate your finances and budget daily with your child.

“Having a grown-up conversation with your kids will make them feel excited and inspired about saving money and will help them develop better financial habits for the future,” said Rod.

While a piggy bank is a great way to start saving, your cash doesn’t earn any interest sitting at home. Once the piggy bank or jar is full, you can help your child open a checking or savings account. This is a great way to teach banking basics, such as interest rates and making withdrawals.

“It can also provide a great source of motivation for your children if they understand that their money will grow over time as long as they don’t touch it,” added Rod.

No matter what age, The Northumberland National Bank has accounts that fit your child’s financial needs.

Minor Checking Account

  • Available for youth ages 16-17

Minor Savings Account

  • Available for youth ages 12-17

PAUTMA (PA Uniform Transfer to Minor Act) Custodial Savings Account

  • Available for children 11 and younger

The minor checking and savings accounts can be opened as an individual or joint account with a parent/guardian as a co-owner, and an ATM card is also available. A custodian must open and close the PAUTMA account and perform all account transactions, and the account funds are considered an irrevocable gift to the minor.

As with all of Norry Bank’s accounts, you have access 24/7 through mobile and online banking. 

“Saving your money may seem complicated, but Norry Bank is here to help,” said Rod. “Parents have the opportunity to lead by example and set their children up for future financial success.”

For more information, visit or call 888-877-6623.