kids savings accounts

Earn More Money With Your Kids Savings Accounts

Posted on 06. Mar, 2010 by admin.

We would all like to earn more money I am sure. It seems a bit frustrating to me that my personal savings account makes a measly 3% while the banks hand out credit cards and loans at 10-22%. There should be a better way to earn more money from a standard savings account. Well, besides finding the very best interest paying bank or credit union, there are a few ways in which you and your kids savings can increase over time.

Being able to earn more money with your kids savings accounts can be as simple as treating the account like a bill. Either with or without your child help- depending on whether they are regularly bringing in money, make regular contributions to the savings account. By adding $600 a year at 4 percent interest will earn your child almost $8000 over 10 years. Check out this neat compounding interest calculator that shows how much money per year you can be making on interest.

$600 a year is $50 a month- about the same cost of the cable bill. If you can teach your child that every month a certain amount of money needs to be deposited into the account and you can show them how the savings and gaining add up they will be much more motivated. If your child is still too young to earn money regular you might consider helping them out to get them in the routine of depositing monthly.

Once your child has a minimum account balance you might consider speaking with a bank representative about different savings options to continue to earn more from the account. Perhaps a CD, savings bond, or a higher yielding savings account will be available. Continue to check around and weigh your options with different banks and credit unions.

Always bring the kids to the bank when you go and allow them to deposit their earnings into their savings accounts themselves. This not only gives them a sense of ownership over the money, but also teaches them about responsibility and they’ll walk out with a sense of pride and accomplishment, not mention a very valuable habit that hopefully they will maintain for a lifetime.

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