What is Kids Savings Account? Comments Off
Why should I open a children savings accounts?
Many times, I have been asked why I have a children savings account at our local branch for both of my kids. I am usually amazed at this question. Why would anyone not want to ensure the future of their children by teaching them how to save by giving them a kids savings account? children savings account accomplishes so many things. First of all, it will be a life long lesson on not squandering your money on frivolous things. Buying for fun is great as long as you plan for your future. Giving your children- kids savings account will give them a strong sense of responsibility, because kids tend to think that banking is for only grown ups. Teaching children to save is upmost in building good character and work ethic for the future.
Difference between children savings account from regular savings account
A children savings account is very similar to the regular savings accounts. You really must shop around for the best interest rates and like the high interest savings accounts; you can earn bonuses by leaving your money in a kids savings account to grow.
Many people like to use their local banks to open children savings account to give their children the experience of actually bringing a savings book to the bank and handing over their savings. Your kid will learn how banking works and see their savings grow. In the long term, it is a valuable less all around. You will earn the child’s respect to a greater degree by giving them their kids savings account and teaching them the benefits of saving. Show by example and have a high interest savings account of your own.
A good parent of today knows the financial instability of this world. Not even considering establishing an interest in children savings account for your child is inexcusable. Most children earn allowances or even money working in the neighborhood washing cars, mowing lawns, or walking dogs. By allowing your child to participate in the process of opening his or her own kids savings account, you are brightening their future. They will have a feeling of power over their destiny. All you have to do is direct their savings in the right direction of saving it in their children savings account. Do not make the mistake of forcing a child to save all money earned or gifted to him or her. Allow a portion for their own leisure and have them designate the rest to savings. Giving your children kids savings account will serve them as a reminder of being responsible with money and save for something important. You will all win as a family.
Most children savings accounts do not have a debit card attached to them. This is so they cannot take out their money on a whim. Saving for the future takes discipline and most children are just not mature enough on their own. A children savings account is under the parent’s name until the child reaches 18. At that time, they can establish their own account. Children savings accounts have no fees attached and are not usually withdrawn regularly from.
The future of our children depends on parents establishing a habit of saving for important life events such as college or the purchase of a first home. It is up to us, as leaders of these growing minds, to begin a habit of life-long savings with a kids savings accounts.