Whether we’ve made good financial decisions in our own lives or not, we all want to teach our kids how to make good decisions. Most psychologists will tell you that the way you handle making decisions as an adult are a direct result of things you were taught or picked up as a child. That makes it all the more important to teach our kids about saving money. Even though savings account rates aren’t at their best right now, we suggest, among other things, helping your child to open up his or her own savings account.

Notice we said that you should help your child open a savings account. We didn’t say you should open one for him. While there’s nothing wrong with opening savings accounts for your kids, it really doesn’t give them any ownership or teach them anything. Here’s how we suggest getting your kids started:

1. Give your kids an allowance. Better yet, assign your kids some chores, and tie the allowance in to the chores so they begin to understand the concept that they have to work to earn money.
2. Teach your kids some basic budgeting ideas. Believe it or not, you can do this without boring your kids to death. Teach them how to set goals by allowing them to look through toy stores or catalogs, and having them pick out an item they can afford to buy if they save for a couple weeks.
3. Teach the difference between short term and long term savings. Once your kids have figured out the idea that saving for a few weeks will get them a better toy, encourage them to start setting some of their money away for the long term. Buy them a piggy bank and have them put the money they intend to save long term away.
4. Open a savings account with them. When your kids have filled their piggy banks, have a talk to them about starting an account in the big people’s bank. Explain that the bank will pay them the going savings account rates for leaving their money there.
5. Encourage them to be generous. It’s better to give than to receive. Many children understand this almost intrinsically. Encourage your kids to give some of their allowance to causes that matter to them. This not only teaches them an important principle about handling money, but it also teaches them about looking beyond themselves.

Chances are, of you’ve been saving for any period of time, you’ve noticed that savings account rates have been in the crapper lately. To say that the interest rates are low on savings accounts these days somehow doesn’t even seem to do it justice. In most cases, people are earning less than 1% interest on their hard earned money when they let it sit in the bank.

Those of us who lived through the ‘70s and ‘80s can remember double digit interest rates. Those were the days for savers. Savings account rates were phenomenal. Watching your interest compound was kind of like watching the numbers on the gas pump. Well, OK, maybe that’s a bit of an exaggeration, but compounding interest did have a way of making your bottom line grow quickly.

So, what can we do to bring back those days? Most are quick to point to the economy (and whichever political party they figure is to blame for it), but let’s not be so hasty. We’d all like to see a better return on your money, but I don’t think any of us really wants to return to the economic times when savings rates actually were high.

Remember the Carter years? Interest rates were high, sure, but so were inflation rates. In fact, inflation rates were even higher than savings account rates. What that meant was that even if you did save your money, your money was losing value so fast that you ended up with a net loss for not spending it when you got it.

Don’t get us wrong, there’s a tremendous value in saving money, even if it does lose value to inflation. The fact is that money is almost always going to lose value faster than it accumulates from interest. That’s just the way things work. If you want your money to keep pace with the rate of inflation, you need to take some calculated risks with it. It’s as simple as that.

We’re not advocating taking your nest egg to Vegas, or even putting it into high risk investments, but you might want to consider:

• CDs
• Safer mutual funds
• Government bonds
• High yield savings
• Precious metals

There are lots of options available for the person who wants their net worth to keep pace (or outpace) inflation, but putting it in a savings account will never achieve that.

You should have some liquid assets in a savings account, of course. But that money should serve as a hedge against emergencies, offering cash on hand. Once you have a few months’ worth of income saved, you’re much better off looking at other avenues for the rest of your savings.

If you have any money in savings, you’ve probably noticed that it isn’t gaining much interest in recent years. Savings account rates are at all time lows. Hell, if they went any lower, the banks would need to start charging you money just for having a savings account.

With savings account rates seldom topping a measly 1% these days (unless, of course, you have your money in a high yield savings account), it begs the question, “Is it even worth it to put my money into a savings account, or should I go ahead and spend it?”

As much as we hate to admit it, you may be better off to go ahead and spend your money, as long as you’re spending it on things that will have value down the road. Frankly, the annual percentage yield of most savings accounts doesn’t keep pace with the devaluation of the dollar anyway.

This is especially true for big ticket items which are bought on credit. The one bright spot of interest rates being so low is that loan rates are also quite low. While it’s a well known fact that it’s hard to get credit in this market, those who have solid credit established are able to enjoy rock bottom rates.

What this means for the average consumer is that, while it may not be the best time in the world for savings account rates, it is a great time to buy large items like:

• A Home. Not only are the interest rates on mortgages as low as they’re ever going to get (if your credit is good, anyhow), but the actual prices of homes is rock bottom right now. Additionally, there are many foreclosed homes for sale which can often be picked up for peanuts.
• A Car. Again, loan rates are low. Additionally, if you keep your eyes open and choose your moment, you can often take advantage of government programs designed to stimulate the auto industry.
• Investment Property. Property is available, and it’s cheap, cheap, cheap. If you’re in the position to buy investment property, do it. Whether you invest in apartments, offices, or some other type of investment property, you will never see a better chance to get into the real estate business any cheaper. And you can rest assured, the value of real estate will eventually start going up again.

We all want to teach our kids about money and its value. But sitting your kids down to talk about things like savings account rates just isn’t very effective? So how should we help our kids understand how to manage their money? Kids learn about money much like they learn about anything else: through play.

Fortunately, there have been scads of games over the years which can be used to teach money management on some level. And no, we’re not talking about Texas Hold ‘Em poker. We’re talking about good, wholesome board games which contain some element of money management. And here are some of the best:

1. Monopoly: with the possible exception of checkers or chess, this is the world’s best known board game. The game was designed during the Great Depression as a diversion from the nation’s terrible economy. The game teaches entrepreneurship and money management, as well as calculated risk. Best of all, there are a gazillion versions to choose from, ranging form the classic game to Disney versions to versions which feature most of the nations leading universities.
2. The Game of Life: one of the most entertaining money-oriented games ever, this game is a lot of fun, and teaches such things as the value of insurance and a college education. The one downside is that (other than the choices to buy insurance and go to college at the start of the game) there really aren’t many decisions to be made.
3. Dungeons & Dragons: This one might surprise you. While it isn’t a board game, per se, it does involve a lot of resource allocation. The “money” involves gold and silver pieces rather than paper money, but players still have to decide how to allocate their resources, deciding how much to spend and how much to save for larger purchases later.
4. CASHFLOW: designed by the author and speaker behind the Rich Dad, Poor Dad phenomenon, this game is designed to teach people to go beyond savings account rates to look at how you can get ahead financially. Designed for adults, it can still be a lot of fun for older kids.
5. Trump,The Game: another property purchasing game, this one has some unique twists that teach the value of taking risks and managing money effectively. It can also be used to help build kids’ communication and negotiation skills.

These days, with abysmally small savings account rates, it can be tempting to forego savings entirely. After all, your money isn’t growing at anything close to the rise ion prices of gas, milk or other common commodities. So, why sock money into a savings account at all if the overall value of your money is decreasing. Here are a few more entertaining options for your life’s savings:

1. Put all of it in a gunny sack and burry it out in the back 40. Then create a treasure map leading to it. Who knows, 200 years from now when someone discovers your map and finally reaches the spot where X marks the spot, your money might actually be worth something. Of course, its primary value by then will be as a novelty item for collectors.
2. Blow all of it on a trip to Europe. Or Asia. Or Disney World. Take your pick. It really doesn’t matter where you go as long as you have a good time. Just make sure you go while your money still has some value.
3. Pool it all together and buy the most expensive thing that you can. It doesn’t really matter if it’s a car or a widget. The point is to spend it before it loses any more value. Hopefully, whatever you spend it on won’t lose value as quickly as the money itself.
4. Go to the casino and put it all on black. While most financial advisers would discourage this, your chances aren’t much better in the stock market these days.
5. Take all of your savings out in $1 bills and rake them into a big (or small, depending on your savings) pile in the middle of the living room. You can alternately roll around in them, pretending you’re “in the money,” or you can jump in them like a leaf pile.

In all seriousness, even though the value of US currency has been going down, and savings account rates have been rather low, it’s still a good idea to save money. Savings with a depreciated value still has more value than money that has been frittered away.

Banking online is a new way people are choosing to bank. People have become used to dealing more with technology than with face to face interactions. There are threats to using banking online such as your account information being stolen. Most banks have dependable secure connections and security measures in place to help keep you from dealing with that. Some people have even decided to bank with companies that do not have a walk in branch anywhere. Some of these newer banks are strictly online banks. Learn some helpful tips on choosing your bank, and banking online safely.

1. Choosing a Bank: Here are a few tips on how to choose the bank that best fits your need.
2. Choosing a Bank Account: With so many options out there, it can be hard to make a decision. Here are some tips on how to choose the right account that works for you.
3. Benefits of Banking Online: Learn what the benefits are from using online methods to do your banking.
4. Online Banking Tips: Use these tips and guide to help you navigate through the online banking world.
5. Five Tips for Finding a New Bank: Discover a few tips to help you pick out a new bank. Whether you want to do it strictly online or you want a branch to walk into, this guide can help you choose.
6. eBIllme: Learn about this site and how you can bank and pay bills all online.
7. Choosing the Right Account: Get tips on choosing the right checking account for you. Learn what you need and what is just fluff that is not necessary.
8. Best Online Banking: Get the basics and tips on how to choose your bank and your online banking options.
9. Best Business High Interest Savings: Get tips here on how to choose your online business savings account.
10. Online Banking Safety Tips: Learn how to bank online safely. Be careful when using your passwords at a public location.
11. The Right Bank Account: With all of the options out there today, it can be a very difficult decision to choose your bank and your account. These are a few tips to help you weed through all the options and find what you really need.
12. Choosing the Best Bank: Get help choosing your bank before opening any accounts.
13. The Right Bank for You: Learn how to choose the bank that will best fit your needs before opening your accounts.
14. Small Business Banking: If you own or are starting up a small business, get tips here on choosing the right bank for your business needs. The bank you have your personal stuff may not be the best place to start.
15. Choosing Your Bank: The bank you choose must fit your needs. You must decide how often you want face to face interaction and what benefits you want on your accounts. This makes a big difference when choosing banks.
16. Safe Online Banking: A few tips on how you can be safe while banking online. Make sure you follow these important tips to insure you information is safe.
17. Your Choice: When it comes down to it, you are the one who will make the final choice on your bank. Choose one that will fit your needs and will work with what you want from a bank.
18. Choosing a Bank: Think about what kind of options you want from your account. Do you want things like online banking or a savings account? Ask your prospective bank what fees they charge and what happens to your account if it is compromised.
19. How to Choose an Online Bank: One blogger shares tips on how you can choose your online bank. Some banks do not have branches to go into so you need to make sure that is good with you.
20. Choosing Your Business Bank: Choosing an account for your small business is just as important as your personal account. Find tips on how to choose the right bank for your business.
21. Safety Tips for Online: Learn how to be safe when you are banking online. Get tips on handling your accounts and setting a secure password.
22. Best high Interest Online Savings Accounts: Get help choosing the high interest savings accounts online. Learn how to find them and get the best rates.
23. Opening an Account: Get tips on how to open bank accounts and the information they will ask you for. Also learn to get the best bank and account for your needs.
24. Save Money and Time: Learn how banking online can save you time and money. You don’t waste gas or your time by having to stand in lines and waiting for tellers.
25. Student Accounts: Get help on choosing the best student account for your college student. See a few examples of the accounts offered.
26. New Business Account: When starting a business, this is one of the first things you need. Learn how to choose the right one for you business.
27. Best Online Savings Account: One blogger shares a list of the best online savings accounts they could find.
28. Online Savings Accounts: Take a look here to find some of the best online savings accounts out there. A savings account is a great thing to have and can help you save up for emergencies or big purchases you need to make.
29. Savings Accounts: Get the most from your money by choosing one of these great online accounts.
30. Best Money Market and Savings: If you want your money to work for you, try one of these online accounts to get it started. Look at the rates and remember to ask questions before opening any account.
31. Best High Yield Accounts: One blogger does some research for you and shows you where to find the best rates on your savings and money market accounts.
32. Rate Catcher: This site looks up and posts the rates for you. See how your bank measures up to others and which ones have the better rates.
33. The Piggy Banker: Get the best deals and find out which banks are the best online banks to deal with. Find all the rates and information on these banks here.
34. Compare Online Banks: Stop by this site to compare the banks you may be considering. They may even have some listed here you had not thought of. Find out which banks rate the best for online access.
35. Best Online Checking Accounts: If you are looking for an online checking account, stop here to get the tips on the best ones to get.
36. Student Accounts Made Simple: Find out which are the best student accounts out there. Make sure you have the right account to help you manage your finances.
37. Banking Reviews: Take a look at the reviews of some of the online banks. Learn which ones are great and which ones you might want to avoid.
38. Bro Money: Check out this site that gives you all the latest news on online banking, updates on banking news and more.
39. Online Savings Accounts: This blogger shares with you the best online savings accounts they have found. Get reviews and the rates on the most popular accounts.
40. Best Interest: This site helps to find the highest interest rates out there and compile them all in one place for you.
41. Reviews on Online Banking: Read here to find out how the banks online banking systems rank in ease of use and features.
42. Savings Account Rates: Discover who has the best rates on their savings accounts right now. See which account works best for you.
43. Ally’s Review: Get a review on the newer bank out there called Ally. Find out about their accounts and what one blogger says about them.
44. Best Online Banks: Find out which online banks rank the best with Frugal Dad blog. He does the research for you and shares what he has found.
45. Is Online Banking for You?: Some people may just not work well with online banking. Read this great article to see if you are ready for online banking.
46. Monitor Rates: If rates are the one thing that can sway you to a bank, check out this site which keeps up with rate changes and posts them for your area.
47. Capital One’s Account: Get information here on the changes they are making to this account and see if it could work for you.
48. Interest Banking Guide: Find out the inside information on banking and getting the right interest accounts. There are several types of accounts to choose from. Get help here finding the right one for your needs.

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In the economy we are in now, it is important to save money and have an emergency fund. Being aware of tips on how to increase your savings is very helpful. There are many tips and tricks out there that you can find. There are ways to save money on purchases and bills to help increase your funds in the account. Here are a few tips on how to increase those savings for retirement or just for your emergency funds. Things do happen and it is easier to handle those things with that all important cushion. Be sure to read all of these tips and see how you can manage to save more money than you ever thought you could. Maybe next year you will have plenty of extra saved and you can use a bit for a nice vacation!

1. 7 Small ways Learn tips here on a few small ways to start growing your savings account.
2. Emergency Fund Learn here how to boost not only your savings but your emergency fund as well.
3. Debt and Savings One man’s advice on increasing your savings and paying off debt.
4. Tip for Savings Learn here a few tips on increasing that savings account.
5. Retirement Here’s how to start or increase savings for retirement.
6. Grow your money Here are a few tips on where to put your money to help it grow.
7. Develop a plan Here are a few steps to develop a plan to help you save money
8. Automate Putting your savings account on autopilot will help grow your money.
9. Rule of 72 Learn here how long it takes your money to double.
10. Strategies One blogger shares their tips and advice for growing your savings.
11. Savings Accounts Learn here what they truly are and how to make them grow.
12. Top Savings-accounts Read here as one reviewer shows you the top savings account to grow your money in.
13. Right Account Here is some help finding the right savings account for you.
14. Money Market or Savings Account Research here to find which you should go with.
15. Growth Here are a few tips on how to grow your wealth.
16. High Yield Account Tips on whether or not a high yield account is for you.
17. 9 Tips Learn here how to build up your emergency fund.
18. Now what Once you have paid off your debts, look here about different types of savings accounts.
19. No Coffee? Learn how cutting back on those high priced coffee drinks can make your savings account grow.
20. Emergency Fund Learn how much you need and what an emergency fund is.
21. High Yield Accounts Learn here what these type of accounts are and if you should have one.
22. 7 Ways Here are seven ways you can grow your money in a year.
23. Paying in full Learn how paying in full can grow your money.
24. Tips Learn a few tips on growing your money.
25. Help Learn how to help your money grow.
26. Information Look at this site to find all sorts of tips on growing your green.
27. Get Smart Learn here how you can grow your money quickly.
28. Build your account Learn here how to build your savings.
29. Automatically Automatic deposits monthly help to grow your balance.
30. Easy ways Learn here some easy ways to watch that balance grow.
31. Motivation Here are a few motivational tips to help you start growing your account.
32. House Savings Here are tips on saving for that house you want.
33. Smarty Pig Review Here one blogger talks about this special savings account.
34. Online accounts Look here to find some of the best online savings accounts to grow your money.
35. Start the account Learn why it is important to start a savings account.
36. Investing Basics Learn how to invest and build your accounts.
37. Types of accounts Look here to find out information on several different types of savings.
38. Savings account or Term deposit One blogger explains the difference and which one is better.
39. Snowflake Learn what this term means and how to use it to boost your cash.
40. Review Another blogger’s take on the smarty pig and whether you should use it or not.
41. Top 4 Look here to learn what the top 4 tax free saving strategies there are.
42. Health Savings-account Learn here what this is and whether it would work for you.
43. Pay yourself first Read here about paying yourself before paying anything else.
44. Savings account or investing in shares Read here to learn about both and which will grow your money better.
45. Search One blogger searches for the ultimate savings account.
46. ING Learn about the ING savings account and see if it could boost your savings.
47. Online Accounts Look at why one person feels online investment accounts are bad investments.
48. Three accounts Listen to one blogger tell about the three accounts he grew up with and how to grow them.
49. Best savings account One blogger writes about the best growth savings account he has found.
50. Learning to save It should be easy but we need to learn how to save by paying our self first.

Image Credits: Alamosbasement

One of the things you do not need to open any of the savings accounts available, is good credit. While a history of good credit is required for many other things such as auto loans, mortgages and credit cards, banks do not run credit scores on individuals who open savings accounts.

All you need is money.

What Types of Savings Account Are Available

There are five basic types of savings account. However, each of them can have many variations even within the same financial institution.

Fixed Rate Savings Account: These are characterized by low yields but high flexibility when it comes to access to your money.

Special Savings Account: These would be holiday accounts or special accounts for seniors or students. These offer a higher yield. However, they may have minimum balance requirements or other restrictions.

Money Market Accounts: Money markets typically offer higher yields than traditional savings accounts. They also allow you write checks on the money as well as do ATM withdrawals. In exchange for the high yields, there are usually restrictions on the number of monthly withdrawals that are allowed. You may also have to open the account with more money and have to maintain a higher minimum balance than on regular savings accounts.

Certificates of Deposit (CDs): These have high yields. However, you must keep your money in the account for a set period of time to attain it. Usually anywhere from six to thirty-six months.

Online Saving Accounts: These accounts, which have proliferated, offer the same types of savings accounts as do their brick and mortar counterparts. They are also insured by the FDIC. They usually have higher yields because of the lower expense of maintaining an online bank as opposed to a brick and mortar institution.

Savings Account Search

While you don’t need good credit to open a savings account, the ability to do good research to find the right account will help you place your money in the right financial vehicle.

You can check out deals (and they are out there!) at your local banks, savings and loans, credit unions or online banks.

In fact, savings account terms vary widely. So, it is a good idea to really do your research on financial institutions in your area or from online sources to find the right one for you.

Once you are fully informed about your options (including all savings account vehicles), you can make the best choice for your financial situation.

One of the biggest questions savers are asking is when will the interest rates on savings accounts increase.

Unfortunately, the answer to that is impossible to predict. There are, however, a few indicators that could serve as cues for an increase in savings interest rates.

Bank Profits

There is no direct correlation between the profit enjoyed by banks and the savings account interest being offered. But an improvement in bank profits would probably eventually result in higher savings rates.

That because deposits in CDs, and savings and money market accounts form the foundation of a bank’s activities including financial market trading and making auto and home loans. When those transactions are thriving, banks have an incentive to offer good savings interest rates to attract funds.

You can review the quarterly earnings reports of banks to get a feel for how profitable they are.

Housing

The activity in the housing market is another bellwether that can indirectly influence the savings interest rates. When the housing market is bustling and people are buying and selling new and existing homes at a brisk pace, it’s a sign that there is money being lent and most importantly, being paid back. That will eventually trickle up to improve savings rates.

The Markets

Any troubles or instability in the market will not help the bank rates. In fact, the same issues that negatively impact stocks could also result in many more months of low savings interest rates.

The Economy

Probably the largest impact on the performance of the savings interest rate is the economy. That means that until people want to and can borrow and the banks accept the risk, there are few ways the banks can make money with deposits.

It hasn’t helped that the government policy is to keep interest rates low because they hope that will stimulate the economy. The fact that hasn’t happened yet doesn’t matter, either. The government will probably continue to keep rates low until the economy perks up.

Searching for the Best Savings Account

However, all of this doesn’t mean you don’t want to save. There are ways to select the right savings account that will help you achieve your savings goals even in a down economy.

Savings is always a good idea. And as long as you are not losing money, any little bit helps. Even if you find a savings account with a 1.30% yield, and you place $1,000 in there for a year, you will have an additional $13.00 by the end of the year as well as the original $1,000.

Right now, that doesn’t seem so bad.

Savings accounts are a vehicle to save your money in a place where you can make some money on it. Think about the alternatives:

• Keeping your money at home. You could do that. However, you risk being robbed if you do. You also will have to have a place to actually put the cash which will take up space in your home.
• Keep your money in a safe-deposit box. You won’t be robbed if you do that. However, you will have to pay a small fee to rent the box. So, you are actually losing money on what you put on the safe-deposit box even though it may be only $50 per year for a box rental.

So, a savings account of some type may be the best place to keep your money.

The Way Savings Accounts Operate

When you open up a savings account this is what occurs:

• You complete an application which will include your social security number and other personal and financial information.
• You deposit money into the bank.
• Depending on the type of account you open up, you will earn interest on the money deposited in the account. For example, if you deposit $1,000 in the account that has an interest rate of 1.30 per year and you keep the money in the account for one year, you will have a balance of $1,013 in the account.

What the bank does with your money is loan it out to other individuals. To make money, they charge the borrowers more interest than the amount they are paying you.

As an example of this, let’s say your bank makes car loans. The interest rate on that loan might be 3.20%. In this case, the bank would make about $19 on your $1,000. Obviously, if you do multiples of this one instance you can see how savers make money on savings accounts and the banks make money on the savings account deposits.

Finding a Savings Account That’s Right for You

Shop around for a savings account. There are many different financial institutions offering different types of savings vehicles. For example, there are online banks, brick and mortar banks, savings and loans and credit unions to choose from.

Savings accounts to select from include fixed rate regular basic savings accounts, online savings accounts, certificates of deposit, individual retirement accounts, holiday accounts, money market accounts and variations of all of these.

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