Instilling money principles at a young age allows children to develop sound financial habits before they enter the real world. While the piggy bank is a good place to begin teaching your child to save, a real bank account provides a sense of confidence when the child gets to interact with money in the same way that adults do.
Whether they’re called kid savings accounts or youth savings accounts, they can be found at most local banks and some online banks, so it is usually easy to compare which banks are more attractive to parents and their children.
The kid savings accounts tend to be the exact same accounts that are offered to regular customers but with special terms. They may require that the account be linked to that of a parent or guardian. You might find interest rates and other features that are unique only to the kid savings account.
As the Internet becomes more accessible, online banking has become a norm for us. Young children live more and more on the web as well. So, it would also be important to see if the bank offers online banking for kids, which would allow them to watch their savings grow.
Additionally, many banks may hold events, workshop and activities that entail games and exercises to educate young customers on how to save. They can be early lessons on financial literacy that are not common in the school system.
After researching several local banks, take your child to visit them to fully experience what it is like to interact with bank associates. Let the bank associate speak to your child about opening a kid’s savings account while you act as a consultant.
In addition to providing a valuable experience, you’ll begin your child on the road to financial independence.
Here’s how one Mom and her daughter chose a savings account.