A Kid’s Guide To Growing Money
While savings accounts are a great tool for growing your money, investments can help grow your money even more. See how they compare.
![A boy sitting at a desk and watching a cartoon](https://aplusfcu.org/wp-content/uploads/blog/img/iamt-jr-growing-money_apr22_blog.jpg)
April is Youth Financial Literacy Month and to celebrate we’re sharing resources and activities you can use to help guide the children in your life – no matter their learning style. Below you’ll find a video to watch, article to read, questions to discuss, and links to a related comic and activity sheet.
Investing Can Be Rewarding, But It’s Also Risky
A savings account is a great place to store your money when you’re starting out. It’s safe and it pays a little interest – but it won’t make you rich! In order to grow your money, it’s best to move some of it into investments with a higher rate of return.
In fact, many financial experts suggest that your money should be growing somewhere between 5% and 10% per year. You won’t get that from a savings account these days.
Just compare $100 in a savings account earning 1% interest per year with an investment earning 5% per year and another earning 10% per year.
At 1% interest, you earn just a few pennies per year. After 20 years, you earn only $20. With a 5% return, you more than double your money to $271.85. And with a 10% return, your money grows more than seven times to $738.70!
One thing to note, however, is investments aren’t insured like your savings account. You take the risk of losing everything if your investment becomes less valuable.
![A woman with a child on her shoulders, another woman is talking to them.](https://aplusfcu.org/wp-content/uploads/global/ctas/shared-cta/standard-global-ctas_startup_aug22.jpg)
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Save More For Your Future
Earn more from the money you save with a StartUP Certificate. Take advantage of this high-yield account option and get started for just $10.
Questions To Discuss
- Would you rather know that your money is safe while it grows a little bit, or would you be OK with taking a risk while your money possibly grows a lot?
- Are you willing to put a portion of your savings away for a long time to watch it grow?
- Is there a company or product that you would like to invest your money in?
![Two young girls playing on a playground.](https://aplusfcu.org/wp-content/uploads/global/ctas/life-guidance-cta/life-guidance-global-ctas_raising-money-smart-kids_aug22.jpg)
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Raising Money-Smart Kids
Talking to kids about money is not only acceptable but also encouraged. Use our tips to help your child understand and practice age-appropriate money management skills.
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Summer Activities In Austin
![A photo of a bridge on the lake in Austin, Texas.](https://aplusfcu.org/wp-content/uploads/blog/img/summer-activities-in-austin_may22_blog.jpg)
Don’t know what to do this summer? Lucky for you, there’s plenty to do in Austin without breaking the bank.