When should you Start a Savings Account for your Children?

children save moneyA savings account is one of the best ways you can teach your kid how to save money. Starting a savings account aimed for children should start as practically early as possible. You should perhaps consider educating your child on the importance of saving by getting them a piggy bank through which they themselves can learn by depositing pennies and watching the money grow.

After this you can then proceed to open a savings account for them. The good thing with opening a savings account is that they get to see results early on and stay motivated. But should you go ahead and open one with just any other bank? What simple tips should you be aware of before proceeding?

Things to Consider when Opening a Savings Account Aimed for Children

First and foremost, the age of your child determines the accounting needs because they have different requirements. For babies, you may use it only for depositing gifts of cash. Older kids may want to deposit the money and withdraw to buy a toy. Teenagers may perhaps need the savings account linked with say a checking account.

Another thing to put into consideration is the proximity of the bank to your place of residence. If it’s a bank you frequent often, then it would be wise to open the savings account for your child at the same bank so that you could visit together. Opt for a neighborhood bank to minimize the trips, one that’s probably inside your local supermarket.

Programs offered for children by the bank-inquire on the services the bank you are considering offers to children. Some of these additional services come in handy as priceless teaching tools. There are some that give children piggy banks, others allow them so go access their safe behind the counter.

Fees, Interest Rates and other Requirements

When opening a savings account for your child, the best kind of account would be one that does not have monthly maintenance fees. Ensure that the bank also does not limit on the number of small deposits made, and look out for those that do not have minimum balance requirements.

There are also banks that charge a certain fee if the account remains inactive for some duration of time. Most importantly, carefully go over the small print before opening the account for your kids.

Follow these simple tips and it will be an enjoyable experience for you and the kids.

 

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