Have you ever wondered “When is the right time for my child to have a bank account?” Your child may have outgrown the piggy bank (or the Two Piggy Bank system we talked about earlier). Most experts agree that somewhere between the age of 7 and 10 is an ideal time to open a child’s savings account. Going to your financial institution and opening a kid’s bank account is such a grown up step. My girls LOVE going to the bank to make a deposit…and they love watching the amount of money in their savings accounts grow each time they make a deposit.
Let’s take a look at bank account tips and options for your elementary school-aged child.
- Open a Savings only account – When you go to the bank there are a few bank account options including a joint checking account where you and your child share the same checking account. This account allows your child to get a debit card. A debit card is a big step up in responsibility and is not the first step. This comes after a savings account has been opened and established. Remember, the goal of having a savings account is to SAVE, not spend.
- No Fees – Make sure the account you open does not have a minimum requirement (such as a monthly direct deposit) or monthly fees (for things like monthly paper statements). Credit Unions are generally excellent places to open savings accounts because they often have low or no fees.
- Easy accessibility – Having a bank that is close to your house or on your general everyday route will make it easy for everyone when deposits need to be made. Ensure there is a way to log in to your account online so you can check the balance. This will help your child stay focused on his/her savings goals.
- Regular deposits – Work with your child to make regular deposits into the account. This might be a portion of their allowance each month. It can also include a portion of any cash gifts that they receive.
- Keep track – Consider keeping a ledger or a goals savings sheet. We have a super cute printable savings chart that you can print and use at your house!
There are many ways to teach your child to save money. A bank account is a necessity in adult life. Teaching your child all about the bank, starting with a savings account, at a young age will help them succeed financially as an adult. Goal setting and patience, learned through saving, are important skills for adult life as well. By learning how to save money early, your child will only purchase what is truly important to him/her because getting to that goal took a lot of work.
Both of my girls have savings accounts. They enjoy going to the bank and depositing money in to their accounts. Signing their names on the electronic pad makes them feel so grown up and they always smile when they are done signing. I love that we are teaching them financial responsibility at such a young age!
What is the biggest goal your child has saved for?
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