School may be out for summer, but learning doesn’t have to take a break. Whether you have a child in elementary school who is just starting to learn about money, or a teen with a summer job who needs to open a bank account, now is a great time to learn about saving money! The Consumer Financial Protection Bureau has an online toolkit to help, with resources on a number of important topics:

Talking with your child about money can go smoother if you keep the conversation age appropriate. The conversation starters here can help you find the words…

Young children and saving

“Some things are worth waiting for.”

• When your child is standing in line for a turn on the swings, or looking forward to his favorite holiday, point out that sometimes we have to wait for things we want.
• Find a jar or can, and label it for saving. Suggest that your child put some of the money he gets into the saving jar, so he can buy a toy or treat when he has saved enough.

School-age children and saving

“Lots of people put money in a savings account to protect it and receive interest on their saving.”

• Visit a nearby federally insured bank or credit union with your child, or show her your online bank site.
• Look at interest rates on savings accounts.
• Discuss with your child how money in savings accounts is safe and protected. If the bank goes out of business, she will get her money back.
• Open a savings account with your child.
• Listen and talk to your child if she mentions how her friends and peers use banks and other financial services.
• Remind your child about reasons to save: to have the freedom to make choices, to smooth out ups and downs, and to feel security.

Teenagers and saving

“A good rule to live by is to save 10 percent of what you earn, and have at least three months’ worth of living expenses saved up in case of an emergency.”

• Once your teen has a steady job, help them set up a savings program so that at least 10 percent of earnings goes directly into their savings account.
• Explain to your child that one goal of a savings program is to have money readily available in case an emergency occurs. Having money in a savings account can help your child avoid having to rely on credit cards or loan options that charge a high interest rate in case of emergency.

• Help your teen track what they actually spend in a month. Talk about how to estimate three months’ worth of expenses, and how much to save from each paycheck to build up their savings.
• Talk about how to keep money in a safe place, like a federally insured bank or credit union. When choosing to open a savings account at a bank or credit union, explain that the interest rate may not be as relevant since the goal is to save enough money to cover emergency expenses.
• Explain that, if possible, it’s better to have more savings—like six to nine months’ worth of living expenses, instead of only three.
• Discuss how much your child can save. What will they gain? What will they have to give up? Is it worth it?
• Explain to your child that once they start a job, they may be offered a retirement account at work called a 401(k). Some employers provide matching contributions as an incentive to save, so it’s smart to save at least enough for the maximum matching contribution. Explain to your child that they sometimes may need to choose between adding money to a 401(k) or to their emergency savings.

For a full list of resources, click here.

Learning about money is essential. And reaching adulthood without having developed basic financial literacy can turn out to be expensive. Start the conversation with your child today, and keep it going year round!