Opening a child’s bank account is not only a good way to build up their funds but it can also be a great teaching tool for saving money. When our children turned one people would send checks, made out in each child’s name, so it was at that time that we decided we would go ahead and start their savings accounts.
Many parents didn’t agree with us, they thought the children were too young to have a savings account. Some parents thought we should wait until they were old enough to understand it so they can go with you to open their account. So when is the best time to set up your child’s bank account?
3 Simple Tips To Help You Get Started
Do Your Research. With so many bank accounts on offer, how do you choose the right one? You’ll want to research each bank and any types of accounts they have to offer. A lot of bank offer incentives on children’s accounts, usually a higher rate or other great incentives.
Save The Money. Teach your children the importance of saving. If they receive an allowance or receive birthday money teach them to put at least a little of the money in their savings account.
Introduce Them To Their New Account. Once your child is old enough to understand the value of money and importance of saving, take them to the bank with you to deposit their money or take any money out. This will help give your child a feeling of independence. You may also want to let them get their own account statements in the mail, with this approach they’ll be able to watch their savings grow or learn that taking money out depletes the savings.
In our opinion, the earlier the better. With the cost of living, school and other things increasing each year the more money they have saved up by the time they are old enough to be out on their own and go to college the better.
What do you think?