kids savings accounts

Student Bank Accounts

Posted on 25. Jan, 2011 by admin.

Many banks often offer special accounts for students who are in college; they offer a way for students to begin to learn to manage their own money, so they can become financially independent.

Student checking accounts are usually “free” checking accounts, with no fees associated with them, no minimum balance, a free ATM or check card with the account, free ATM usage act ATMs that belong to a particular financial institution, free online checking capabilities, free direct deposit, and free online bill paying services.

Why are student bank accounts beneficial?

Student bank accounts are beneficial for students who are just learning how to manage their money because these accounts are generally free, for all intents and purposes. In general, institutions will still charge students when they ordered checks, and will usually have overdraft charges associated with these accounts as well. In other words, students will have to pay overdraft charges if they “bounce” checks or otherwise overdraw their accounts, in that they spend more than the account actually contains.

Where can students find student bank accounts?

Many if not most banks these days offer student checking accounts and/or kids savings accounts. Students who have just arrived at college should do a search online for local banks in their area. Oftentimes, branches actually advertise that they cater to students, as well.

Some things to keep in mind

Although student bank accounts do indeed offer students services for “free” that usually cost money (like free ATM usage, free checking and savings accounts, and so on), they aren’t a free ride. They are a means for students to learn how to manage money and become financially responsible. Students should remember that they can only spend the amount of money that’s actually IN a checking or savings account. Any ATM or check cards, too, are usually tied to checking accounts. That is, a check card is NOT a credit card. Credit cards bill you at the end of every month (usually in 30 days cycles) for what you’ve spent, and charge interest on unpaid balances. Check cards, on the other hand, are debit cards; the money spent on a debit card comes directly out of a checking or savings account. Therefore, students have to be careful that they treat a debit card exactly as they do their checkbooks. They can only spend the amount of money in the checking or child saving account; if they don’t limit spending to what’s in the account at any given time, they’ll likely be charged overdraft charges.

Once out of school

Although student checking accounts are generally not available to students once they’re out of school, most banks do still offer free or low-cost services to those who want them. Many banks, for example, offer free checking accounts as long as patrons utilize direct deposit, wherein paycheck amounts are deposited directly to checking accounts, instead of having patrons cash physical paychecks. Direct deposit other similar services actually save banks money, since they don’t have to process checks when they do so. Therefore, banks often “return the favor” in many cases by offering free checking and other “free” services in exchange for making things easier (and cheaper) for them, too.

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Why Starting A Child’s Saving Account Is So Important

Posted on 28. Nov, 2010 by admin.

If you want to give your kids a truly good start in life you will help them learn about saving money. Teaching a child about money is one of the best things a parent can do, but too many parents overlook this very necessary lesson. Child savings account is a beginning way to get kids interested in saving and properly spending money.

Helping your child start saving money instead of spending it is a wonderful way to teach:

* Financial Responsibility

* Independence

* Budgeting

* Monetary goals

You can open a child’s saving account as early as age 5 at some institutions, and this in turn will give them their first true step towards independence and help create a ‘money conscious’ foundation that will remain throughout their lives.

Teaching children to save money can be very difficult for almost all parents. Kids naturally gravitate toward games, candy, comics and arcades. This is where they believe the fun is and they want the chance to enjoy this ‘fun’ with their peers. The only thing that is not really clear to your kids is ‘where this spending money comes from and where it is going’. A child saving account will help to monitor and protect the money and help them understand that money going out needs to go in first.

Children need to understand that money is earned and it really does not come falling from the sky. This lesson should begin as early in life as possible, and it should be part of their daily routine, not something that seems to be a punishment.

The value and importance of money can not be overstated, as many parents have discovered during the past few years. Even for adults it is hard to get a real handle on their financial obligations and direct a certain amount of money toward their savings funds.

Instead of lecturing your kids or coming off sounding like a miserable miser you can set the tone for thrifty savings early in life. This makes it easier to encourage financially sound money habits. And be creating a simple child savings plan you can begin to prepare them for their financial future.

Some parents have discovered the kits that allow their child to save their money at home and write checks for what they need, or want. The checks are cashed by the parents and the balances are monitored by both parent and child. This is a fun and easy way to help teach any child about the basics of money as well as the principles of ‘supply and demand’.

Showing your child how to handle money responsibly can be fun and it can help them learn the real importance of having money that is really their own. They can absorb the basic rules about saving money, spending money and budgeting without any lectures being involved. This makes the whole plan a better deal for parents and kids.

Parents who help their children develop their own kids savings accounts and budgets are also encouraging them to become more mature and financially independent. As these same kids enter their teenage and young adult years they will understand how to manage their money, credit and routine bills. Instead of rebelling at the idea of saving money these children will consider the idea as normal and practical as deciding what to eat for dinner.

You can begin by encouraging your child to save a portion of their allowance each week in either a piggy bank or child saving accounts. You should also encourage them to save monetary gifts and unexpected monetary windfalls that may occur throughout the year.

It is best to let your child have some input about the amount to save because this will help them feel more in control of the situation. You can always review the savings plan every month or two and renegotiate the ground rules. Call this a ‘financial conference’ and treat it seriously.

Find a savings account for kids in your area that features special savings programs designed for children. This is a perfect way to help your kids feel like ‘little adults’ as they begin to handle their money responsibly.

Some financial institutions have programs that will be especially appealing to a child. The initial deposit can vary depending upon which bank you use. Each kids bank account will also have specific requirements about deposits and withdrawals so check to see which bank will work best for you and your child.

There are banks that offer ‘savings points’ to children. These points are earned for each deposit they make into their own savings account. The points can be traded in for rewards and prizes that are geared to appeal to children. What child wouldn’t want to save money if they are going to get a prize such as a stuffed animal, a game, a book or some other special treat?

Encouraging your child to develop healthy, responsible spending and saving habits will make them think twice about unnecessary purchases. Being able to pay for their own purchases also helps a child develop self confidence and independence. They are also much more likely to take care of those items they buy with money that comes from their own piggy bank or child savings accounts.

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