As the holidays grow closer, the search for the perfect gift intensifies. While toys and gadgets may bring instant joy, consider giving a gift that will keep on giving – a savings account. It may be the most meaningful present you can give a family member as it sets them up to start their financial journey on the right foot.
Why a Savings Account is a Great Holiday Gift
A savings account is invaluable for teaching financial responsibility, budgeting, and saving from a young age. It’s a gift that equips your loved one with lifelong financial skills. Unlike many material gifts that lose their charm over time, the money saved in an account grows with interest, providing lasting value and security. A savings account can also serve as an emergency fund, providing a safety net for unexpected expenses and helping your family member become more financially resilient.
Find the Right Savings Account
Look for a savings account with minimal fees and a competitive interest rate. Many banks offer special accounts designed for minors. For example, at QCB, we offer LINQUP Savings, which helps customers under age 30 to jump-start their savings (see account details here).
Caution: Be aware of online savings accounts that promise great rewards but don’t have FDIC insurance or other precautions in place. Do your homework and ask questions if you don’t understand something.
Give a Boost to the Account
To kickstart the savings journey, consider making an initial deposit. The amount can vary depending on your budget, but even a small deposit can gain dividends over time. For example, let’s say you open a LINQUP Savings account at QCB and deposit $50 into the account. We’ll match that amount (up to $50), so you’re giving a $100 gift to your loved one. It’s a win-win!
Ongoing Contribution to the Savings Account
If you want to help your loved one keep on giving to the savings account, here are some ideas to consider:
- Automatic Transfers. Set up automatic transfers from his or her paycheck, even if just $10, so the account continues to grow.
- Sign Up for Automatic Savings Programs. Look for programs that allow you to put your “change” from debit card transactions into a savings account. For example, with our Q-UP Program, every time you buy something using your QCB debit card, we’ll automatically round up your transaction to the nearest dollar and transfer your change to your savings account. Over time, your change will add up.
- Special Occasion Contributions. Ask family and friends to contribute to the savings account instead of giving gifts for birthdays or other special occasions.
- Make a Match. Establish goals for your loved one and consider regularly matching a portion of his/her contributions. For example, if you set a goal for your daughter to save $100 over six months, you will match that amount.
By gifting a savings account, you’re not just providing financial security, you’re offering the tools and knowledge needed for a secure financial future. It’s a present that has the potential to make a lasting impact, empowering your loved ones to take control of their finances and achieve their goals. This holiday season, consider the profound benefits of this thoughtful gift and watch as it paves the way for a brighter financial future.