Teach Good Financial Habits
Teach Good Financial Habits with a Children’s Savings Account
Like every parent, you want to give your children the best start in life.
You teach them important health and safety habits. You encourage them to do their best in school. You teach the importance of kindness towards others.
But what’s the best way to teach them about money? Where do you start?
That’s where a savings account for kids can help. Let’s take a look at some of the short- and long-term benefits of establishing an account early on, and how to help your child sign up.
What Are the Benefits of Savings Accounts for Children?
A savings account gives children an opportunity to learn about money from an early age. It’s a great hands-on teaching tool for kids of all socioeconomic backgrounds:
It helps children understand how banking works
It’s an easy way to save allowance or gift money
They can practice how to make deposits and withdrawals
Balancing a monthly statement, either online or on paper, can help a child practice important math skills
Many studies show that starting financial education and savings early in life can positively impact a child’s socio-emotional development and financial capabilities. Compared to their peers, children with savings accounts enjoy a number of positive outcomes:
More financially literate
More likely to accrue assets
More likely to go to college
More likely to invest in stocks as adults
Perhaps the best news of all is that it doesn’t take much to start your child on a path to greater financial knowledge and security. According to Dr. William Elliott III, Associate Professor at the University of Kansas-Lawrence, even children from low- and middle-income families are more likely to attend college if they have a modest savings account.
How Do You Open a Savings Account for a Child?
Many banks and credit unions offer special accounts to help your children begin learning good financial habits.
For example, the Kirby Kangaroo Club at BluCurrent Credit Union is a free savings account that comes with many special features for young savers 11 and under:
A minimum balance of just $5
It earns a standard member savings rate once the balance goes over $100
Members get a notification of further account options upon turning 12
Members also get access to other fun perks:
Exclusive event invitations
If your child is 11 or younger, here’s how to join the Kirby Kangaroo Club:
At least one parent, grandparent, or legal guardian must be joint on the account
You must present your child’s social security card
As the joint account holder, you must present your driver’s licence
The initial deposit must be at least $5
Would you like help in teaching your child about money? Do you have questions about opening a savings account for a child?
Contact us at any time. We’re excited to help your child establish good habits that will help him or her enjoy a lifetime of financial success.