Setting up savings account for your child
Want to give your child a positive start in life? Here’s an idea: set up a savings account for them. A savings account may seem like something that only a “grown-up” should have. But consider taking the step to create one for your child. The experience will go a long way in teaching your child the value of saving money at a young age. As their friends and peers waste money, your child may think twice. They will understand that money is more than just something that can readily be obtained from one’s parents.
Instead, your child will come to view money as a tangible object that is deposited in the bank and that must be saved. In time, this knowledge and appreciation will hopefully allow your child to save for bigger, truly adult things like a car and a house. Saving habits, instilled at a young age, may allow them to afford these things well before their peers as well.
So how do you go about setting up an account? For starters, you need to find a bank. If you already have a bank account, talk to the people at your branch and find out what they would recommend. In the best case, you can find an account that has no monthly maintenance fees, along with no monthly minimum account balance. These features are important, because they make the experience less costly and also reflect the fact that your child may not have an adult level of savings yet.
Once you have found an account that meets these requirements, either at your own bank or another, it’s time to get your child involved. Bring your child to visit the bank and allow them open the account themselves. Let your child place their name on the account and make their first deposits. Naturally, in doing so, you should still be sure to supervise the interaction. But beyond keeping an eye on your child and the tellers, let the experience proceed naturally. Handling the account with minimal interference will give your child a sense of being grown-up. And that is, after all, one of the most important goals of establishing a savings account for your child – giving them that feeling of grown-up independence and confidence.