Program Helps Parents, Teens Save $20 Million
NEW YORK -- In its first full year of operation, Early Earners, (www.earlyearners.com) a financial learning site for families that facilitates the startup of savings programs, has helped America's families save over $20 million for the future.
The company helps children and their parents save with HSBC Direct, the online-only banking business of HSBC Bank.
"The key is to teach families about the importance of saving while giving them the ability to start a high-yield savings program immediately with as little as one dollar," said Early Earners co-founder David Crosta. The company's Web site is designed to appeal to kids, teens and their parents with easy-to-understand language, and a quick and easy approach to securing one's future, dubbed "The Early Earners Method."
Automatic saving may have contributed in part to the explosive growth of deposits this year. Early Earners allows parents to save with their kids by setting up regular, automatic transfers from their checking accounts into their children's savings. The site teaches by example, citing that if a family were to establish automatic transfers equivalent to $3 a day when a child is 5, that savings fund could hold more than $38,000 when the child turns 25, assuming 5.05% APY.
More advanced calculators allow families to forecast results of their own customized savings programs.