Learning the value of savings is a lesson that never gets old. In fact, given the startling statistics showing Americans are saving less than they have since the Great Depression, teaching young students the importance of putting money away is as vital a lesson as ever.

The U.S. Commerce Department's Bureau of Economic Analysis reported late last year that Americans spent more than they earned in 2005 -- a negative savings rate of 0.5 percent for the year. That's the first time that has happened since the Great Depression.

At RCS, students are encouraged to save through school banking programs at Pieter B. Coeymans and A.W. Becker Elementary Schools.

Both programs – which run through First Niagara Bank – allow students in kindergarten through fifth grade to deposit money in a student savings account. The students can deposit whatever amount of money they want, even as little as 25 cents.

Pieter B. Coeymans PTO President Amanda Demitraszek said that between 30 and 40 students took part in the program at PBC last year. Students are encouraged to take part through First Niagara rewards such as “a special prize” for every seven deposits and stickers for every deposit.  Additionally, Demitraszek said that at the end of the school year, the bank draws a few names of student bankers from each school and awards them tickets to The Great Escape theme park.

“We believe very strongly in providing incentives and making it fun,” said First Niagara Bank School Banking Director Suzanne Kilcher.

“If we can get children interested in savings when they are young, our hope is that fast forward a decade or so when the children come out of high school … they have learned a few things about the value of savings and good financial practices.”

The incentives go far beyond stickers and a trip to an amusement park.

Ms. Kilcher said the bank pays a significantly higher interest rate on student accounts as a means of sparking an interest in savings.

“It’s a great experience for the students,” said A.W. Becker Teacher Lisa Saltis, who coordinates the program in that school.

Through commercials and pop culture, students are barraged with the concept of instant gratification – buying goods now and not worrying about how to pay for them.

School banking programs provide a means for students to learn that money must be saved sometimes – whether it’s for a long-term need like college or a car or a short-term desire, such as the latest video game system.

“As a country we are really in debt and yes we are a consumer society, but we have to address what we are doing with savings and how our children understand the value of savings,” said Ms. Kilcher.

A hands-on experience

Most parents establish a savings account for their children when they are young. Some even make regular deposits in that account.  But, if the child is not involved in the process they are not learning, said Ms. Kilcher.

“Many of us as parents have a savings product for our child, but that has zero value as a learning product for the child. Most children learn only through a hands-on process. The act of getting in line on  banking day, going to a parent volunteer and handing over their envelope and immediately getting a receipt for making their deposit,” said Ms. Kilcher.

The lesson should continue once the child goes home, she said.

Parents should take the deposit receipt and show the student how to record the transaction in their bank books and how to add up the value of their deposits.

When statements are mailed, Ms. Kilcher said, parents should help their students compare their bank books with the statement and add in the interest payment.

The bottom line, said Ms. Saltis, “is school banking is another means of teaching students skills they will need throughout their lives.”