As U.S. Personal Saving Rate Hits Four-year Low, Univest Bank and Trust Co. Offers its Top 10 Tips on How to Teach Kids to Save

Univest also introduces new Eaglet mascots, Buck and Penny, who will promote financial literacy among children

Buck and Penny     Check

SOUDERTON, Pa. - July 27, 2012 - With Americans' personal saving rate - individual  and family savings as a percentage of disposable income - at a four-year low, Univest Bank and Trust Co. offers 10 tips to help parents teach their children the importance of saving money. The bank also has introduced two new mascots - Buck and Penny, young American Eaglet twins - to help promote wise money management to children.

 

"The rate of personal saving in the United States has been low for years - and it has declined even further as the slow economic recovery continues to put pressure on family budgets," said Annette D. Szygiel, executive vice president and chief experience officer at Univest Corporation. "The U.S. Department of Commerce recently reported that Americans' personal saving rate was under four percent in May. That's the first time since early 2008 that the saving rate has been under four percent for four straight months. Now more than ever, parents must do everything possible to encourage their children to develop strong money-saving habits."

 

Experts acknowledge that the sooner children are taught about money and financial management, the more likely they'll become conscientious savers. To help parents get their children on the road to financial responsibility, Univest has introduced its new mascots, Buck and Penny, who will make appearances throughout the bank's communities to promote financial literacy.

 

Here are Univest Bank and Trust Co.'s top 10 tips for teaching children to save: 

  1. Set a good example. Most of what children learn about money during their early childhood comes from observing their parents. One of the best things you can do is let your children see that you save money, too. Put money in a jar and tell him or her it is your savings jar. When you go to the bank to make a deposit, take your children with you. When you model responsible money management behavior, your kids will notice and mimic you.
  2. Teach your children about saving at an early age. Talk about the importance of saving money early in your children's lives.  Most children start to learn about counting and money when they are in the first or second grade. By the time they are teenagers, children have developed the money habits they will keep throughout their lives.
  3. Give your children an allowance. An allowance teaches kids how to earn, save, invest, spend, budget, delay gratification and make wise purchasing decisions. An allowance also can be used to teach them that money is something they earn - not something they're entitled to.
  4. Open a savings account. Opening an account helps teach children important lessons about saving and investing. Kids think ATMs are magic. They don't understand that you have to deposit more than you withdraw.
  5. Take your children shopping. A grocery store is a great place to show kids how to compare prices - the price per ounce, for example. Show them that just because something is on sale doesn't mean it's the best value.
  6. Help your children learn the difference between needs and wants. This will prepare them for making good spending decisions in the future. And encourage children to identify fun things to spend their money on - things they can eventually buy if they manage their money wisely.
  7. Encourage your children to set money saving goals. People of any age rarely reach goals they haven't set. Teaching your child to set goals and work for results helps teach them how to make decisions, be disciplined and become responsible for themselves. It helps them create self-esteem, too.
  8. Teach your children the value of work and a strong work ethic. Encourage your children to work for money - whether it is extra chores around the house, selling lemonade in the neighborhood, babysitting, mowing lawns, shoveling snow - or, for older children, working a weekend or summer job.
  9. Allow your children to make spending decisions. Whether the decisions are good or bad, they will learn from their spending choices.
  10. Offer rewards for saving money. Consider rewarding your child for saving his or her money. For example, if your child doesn't spend any money for a certain amount of time, provide a small reward or treat. Or try matching a portion of your child's savings, which is a great way to encourage your child to save extra money.

 

In January 2011, Univest launched its Eaglet savings account, a children's savings program. The account, designed to grow with young savers, focuses on teaching children the value of saving their "bucks" and spending their "pennies" wisely. The savings club has no minimum balance and offers young savers benefits including a $10 deposit by Univest and complimentary gift when the account is opened, guaranteed interest and birthday rewards until age 18.

 

Schools, libraries or other organizations that would like to invite Univest's Eaglet mascots Buck and Penny to participate in a special event or community activity can contact Univest's corporate communications team at 215-721-2450.

This press release of Univest Corporation and the reports Univest Corporation files with the Securities and Exchange Commission often contain "forward-looking statements" relating to present or future trends or factors affecting the banking industry and, specifically, the financial operations, markets and products of Univest Corporation. These forward-looking statements involve certain risks and uncertainties. There are a number of important factors that could cause Univest Corporation's future results to differ materially from historical performance or projected performance. These factors include, but are not limited to: (1) a significant increase in competitive pressures among financial institutions; (2) changes in the interest rate environment that may reduce net interest margins; (3) changes in prepayment speeds, loan sale volumes, charge-offs and loan loss provisions; (4) general economic conditions; (5) legislative or regulatory changes that may adversely affect the businesses in which Univest Corporation is engaged; (6) technological issues which may adversely affect Univest Corporation's financial operations or customers; (7) changes in the securities markets or (8) risk factors mentioned in the reports and registration statements Univest Corporation files with the Securities and Exchange Commission. Univest Corporation undertakes no obligation to revise these forward-looking statements or to reflect events or circumstances after the date of this press release.