kids savings accounts

High Interest Savings Account For Kids

Posted on 18. May, 2011 by admin.

Getting your child off on the right foot financially is always a good thing, you can do this by starting them out with a high interest savings account for kids. Getting kids financially aware early is rewarding, and finding a great account is actually easier than you may think: banks compete quite fiercely for new savings accounts. Being able to start a child out early, the chances are greater of having someone who will then become a lifelong customer.

When you begin, there are a few things you are going to want to look for in your child’s bank account. First of all, a no fees account is best. It stands to reason that you’ll begin with a small amount, and you don’t want charges on the account for not meeting a minimum balance. Next, pay attention to those rates and look for the highest rate you can. Utilizing a generous interest rate is smart, as it will help your child’s savings grow quite a bit. Also bear in mind any access limitations the accounts may have. When you are looking for a high interest savings account for kids, you need to be sure it’s free to withdraw money.

While you’re teaching kids about savings, you are also helping them build confidence. Anyone who has ever taken a child to the bank, allowed them to walk up and deposit the funds themselves can tell you, kids love that. It makes them feel that they are making their own decisions as well as teaching them important lessons about finances. It is often best to allow your child to set up the account with you, and as you do this, make sure that they read over all of the paperwork as well. Teach them to pay attention to things like the interest rates, the fees, the other perks that may be offered with each account. Really draw them into the decision making process, and empower them to make their own decisions.

A high interest savings account for kids are the best way to go. Teaching your child to save is a wonderful thing, but that doesn’t mean skimping on the savings return. Most bank accounts for children do not have fees, so this makes it easier. However, if you want to get your child a high interest account, you can always check the age restrictions. If a standard account doesn’t have any fees, it’s a great idea to go ahead and set up a standard high interest account instead of a child savings account.

Enabling your child to learn savings is a great first step to teaching them budgeting skills, as well. Once that initial deposit is made, you may want to have them sit down and draft their own budget, including savings. They will then begin to build a habit that will serve them well throughout their lives and develop a very strong financial literacy. When you begin with a high interest savings account for your child, you can explain the process to them. This also helps to make them feel a stronger part of the overall decision making process, and this will then have them feeling great about what they are doing.

Some High Interest Savings Accounts For Kids:

American Riviera Bank- Current APY is 9%
1033 Anacapa Street
Santa Barbara, CA 93101
805.965.5942
www.americanrivierabank.com

Chevron Federal Credit Union- Current APY is 7%
P.O. Box 2069
Oakland, CA 94604
(800)232-8101
www.chevronfcu.org
*must meet requirements

ING DIRECT- Current APY is 1%
1 South Orange Street
Wilmington, DE 19801
1-800-ING-DIRECT

For additional Childrens Savings Accounts, visit DepositAccounts.com

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Savings Interest Calculator Can Encourage Kids To Save Money

Posted on 22. Mar, 2011 by admin.

As early as now, it is vital that you educate your children about money. This will help them become better and more responsible persons as they grow up. As soon as your child is able to understand the principles of math, get him or her a savings interest calculator.

Here are several ways to encourage your child to save and invest:

1.) Teach them about the things that can do with money – There are 3 things that a person can do with their money. One, they can spend it. Two, they can store it in your pockets, wallets, and purses. And three, they can save their money in a bank or invest it and watch it multiply. Letting your child know that money is not meant to be spent at all times. Sometimes, you have to save money in case you need it in the future.

2.) Set financial goals with your child – Ask your child about how he sees himself in the near future. Is he going to be a successful lawyer or a well-known doctor? How do they want to live? Are they going to be poor or rich? Setting goals early on will help them know how investing and proper saving can make a huge difference in their lives, especially in the future.

3.) Live practically – As much as possible, do not spoil your child especially if you know that you cannot afford to give them all the luxuries that they want. It is okay to splurge every now and then or to give your child rewards for the good things that they accomplish. But do not make this a habit. Show your child how budgeting their allowance will help them save money.

4.) Develop a financial plan with them – For example, if your child keeps on begging you to buy him new clothes and toys, tell them that they can buy them from their allowance. Develop a financial goal so that they will stay motivated and save money. Tell him that if they want a new Sony Playstation, you are willing to give them 30 percent of the cost if they save for the other 70 percent. Through this, you are encouraging them to save up if they wants to buy something.

5.) Open kids savings accounts for your kids – Take your child to a trip to a bank and them how the money that they currently have in their pocket can double over time if placed in a savings account. Open a savings account in your child’s name so that he or she will sense the responsibility that you want him to meet.

6.) Give your child choices when it comes to spending – Birthdays are expensive affairs, especially if your child wants to invite their whole class and have a barbecue party at the beach. Instead of arguing about how they should spend their birthday, give them choices. Tell them that he can have a smaller birthday party this year but you are going to deposit some cash in their savings account in lieu of a barbecue party.

Encourage them by showing them how much money they can save and earn with a savings interest calculator. Put in any amount and see how much it gives you. Just try out the savings account interest calculator below and see for yourself what you can save!

Simple Savings Calculator

Determine how much savings from a deposit.

Teaching your child to save money should be fun. Encourage them that it does not matter if they are saving only a little money for now because in the future they will be able to use it for their own good. And by showing them savings account interest you can really explain to them how money grows and how banks can help to make your money grow more and more.

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