kids savings accounts

Looking Into A Childrens Savings Account

Posted on 19. Feb, 2010 by admin in Helping Kids Make Money, Kids Savings Accounts, Teaching Kids About Money

In order to help your child become financially responsible as an adult it is necessary to start teaching them how to budget and save when they are still young. You can start looking into kids savings accounts at any age and is a great way to begin teaching your child to be financially responsible.

One great way to get them interested in saving money is by giving your child a piggy bank and allowing them to start saving change. Tell them once they have filled the piggy bank you will then take them to the bank so that they can open a real savings account just like adults have. Chances are your child will be thrilled with saving simply to be like mom and dad.

While your child is beginning his savings take the time to scout around for a Kid friendly bank. This will be a bank that offers accounts for children that does not require monthly maintenance fees or any minimum balance to remain open.

The bank should allow for very small deposits, and not charge for inactive accounts. This is important because your child is likely to be saving sporadically at times and you don’t want the account closed if he goes some time without making a deposit.

Once you find a childrens savings account that interest you, discuss with them how you are trying to encourage your child to save and ask them if when your child opens the account if they will give your child a tour of the bank and explain to them how things work. Most banks will be happy to oblige though they may ask for advance notice to make sure they have an employee available to spend time with your child.

Once your child has filled his piggy bank then plan to take the money in to open the account. Make this day a celebration as it will be an important day in your young child’s life. There is nothing like seeing your child’s face when he receives his saving book and is offered a handshake by a bank employee.

Afterward you may want to take your child out for a treat as a way to celebrate. Each week, month, or however often your child deposits money take the time to show him how his account is growing. Many banks now allow you to access your account on line and your child will love checking his account by computer to make sure his money is still there and seeing each new addition posted to his account.

As your child saves there will be times he wants to spend some of the money he earns or is giving and that should be allowed. Perhaps you can establish a policy where he saves a certain percentage and can save the rest. For example if he gets ten dollars for a birthday gift and you have an agreement that he saves 10% then a dollar will go towards his saving account and he can spend the rest on whatever he would like.

A child who is not allowed to spent any of his own money will begin to resent having to save. By allowing him to spend his own money and saving only a little he will more likely continue to save through out his life.

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