With our country’s national debt at an all time high, our economy bouncing back and forth from good to bad and more people fighting for good credit than ever, I think it’s safe to say that the next generation needs a better grasp on money. If we ourselves aren’t even good with money though, how will they ever learn? It’s important that a kids savings account get set up early so they can have less worries about money.
It is time to start the cycle over. Our kids NEED to have savings accounts. Most banks and credit unions will give a free savings accounts to minors. One responsible adult (normally a parent or guardian) needs to be on the account with the child to sign for transactions and in most cases the only thing needed for the child is a social security number. Take this time to learn from your own mistakes or your peers’ mistakes to help our children climb above the financial crisis going on.Here are 5 good reasons you should set up a kids savings account:
5 Reasons for a Kids Savings Account
- Teaches them about financial stability early. I honestly don’t believe a child can be too young for a savings account. All of my children had accounts open before they were even a month old. My husband and I started by putting in a very small $5 a month until we could afford more. As they got older we started showing them bank statements and we are working on the math of having an account register. My oldest is 5. Is it too advanced for her? Maybe. But maybe not. She loves going over the numbers.
- Gets them familiar with the bank setting. I cannot stress enough how important it is to take your kids to the bank with you. Sure, it’s not the most exciting setting ever but by seeing that it is an important errand and having them witness the process will help instill healthy financial practices in them as they get older.
- Keeps YOU from spending money designated for them. How many times do your kids get money for a holiday or their birthday and it just ends up paying for groceries or getting spent on yet another toy they don’t need? I bet if Grandma knew her gift was just paying for milk she would have gotten something different. And I’m also betting that if you are in a situation where you can’t afford milk otherwise Grandma would help out without batting an eye. Try your hardest to separate the kids’ money from yours and forget it even exists. Don’t borrow from your kids or sneak money out without telling them either. The whole point of the account is to not just say you have it but to have it for a reason.
- Comes along with fun extras. This past weekend we were able to get into a local pumpkin patch for free. What would have cost our family of 5 plus Nana over $30 in admission prices we got completely free as a perk of the girls all having accounts with a local credit union. Call around the banks in your area. Many want to encourage kids to save and have events just like this all year round. The girls also get a special treasure box prize on their birthdays and little trinkets every time they make a deposit in person of $5 or more.
- Prevents money from getting lost in a messy bedroom. If for no other reason, get an account so the dang money doesn’t get lost. My 5 year old is into purses these days. Her great grandma loves giving her little purses she doesn’t use anymore and always gives her $1 for helping pick up sticks or trash or whatever and then all this money is suddenly hiding in purses. When we moved recently, you would have thought we struck gold with how many pennies and random other coins we found under the bed and behind the dresser.
My husband and I both come from families who had a lot of hard times. Things weren’t always perfect growing up but we both were able to take away important lessons on saving and passing those values on to our daughters is a main goal of mine. So, ready for a kids savings account? Set? SAVE!
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Tags: Heather C.