If your son or daughter's piggy bank is nearly overflowing, it may be time to consider opening up a bank account for them. An account helps teach children how to keep track of money easier. There are a few different types of savings accounts that you should consider for your child.
As soon as your child has money of their own, they can start a savings account. Find a day with free time and make a trip to your bank branch. Tell the bank associate there that you are interested in setting up a child's savings account.
Together, you can open a statement savings account. Statement savings accounts give you a monthly report of all activity. You will be able to see all deposits that your child has made, and any withdrawals that you have made together as well.
You should look over each statement carefully with your child, and explain all aspects of it to them. Show them the amount they started with, interest they accrued, the final amount, and any other activity. If your statement shows the withdrawals without the description, you can write the details on the statement to help the child track how they are spending their money.
There are also passbook savings accounts. I actually had one of these when I was in college. Each account holder is given a small book. Each time a deposit is made or a withdrawal is requested, the book is run through a machine that records the transaction on the pages of the passbook. This way, your child finds out his or her new balance right away instead of waiting for a statement at the end of the month. Some kids like that because they can look at their money as often as they want.
Banks are not the only institutions that issue savings accounts to children. Credit unions also have savings accounts available to the children of their members. There are special savings accounts that are designed for kids of various ages. When the account is opened, they receive an ATM card with their picture on it and other free gifts for starting the account.
This ATM or debit card, can be used like cash by your child when they wish to buy something. Parents should keep the purchase receipts and teach children how to verify them against a statement each month. They should also be taught to deposit a percentage of their allowance.
For children under eighteen, some states will offer what is called a "custodial savings account". This type of account states the parent's name as the account holder, with child's name under it. When the child turns eighteen, ownership of the account can then be transferred to the child (now young adult).
Children can keep track of their money much easier with the use of ATM/debit cards. You should greatly consider opening a savings account for your child, as they are a great tool for teaching them how to save and track and manage their money. - 15465
As soon as your child has money of their own, they can start a savings account. Find a day with free time and make a trip to your bank branch. Tell the bank associate there that you are interested in setting up a child's savings account.
Together, you can open a statement savings account. Statement savings accounts give you a monthly report of all activity. You will be able to see all deposits that your child has made, and any withdrawals that you have made together as well.
You should look over each statement carefully with your child, and explain all aspects of it to them. Show them the amount they started with, interest they accrued, the final amount, and any other activity. If your statement shows the withdrawals without the description, you can write the details on the statement to help the child track how they are spending their money.
There are also passbook savings accounts. I actually had one of these when I was in college. Each account holder is given a small book. Each time a deposit is made or a withdrawal is requested, the book is run through a machine that records the transaction on the pages of the passbook. This way, your child finds out his or her new balance right away instead of waiting for a statement at the end of the month. Some kids like that because they can look at their money as often as they want.
Banks are not the only institutions that issue savings accounts to children. Credit unions also have savings accounts available to the children of their members. There are special savings accounts that are designed for kids of various ages. When the account is opened, they receive an ATM card with their picture on it and other free gifts for starting the account.
This ATM or debit card, can be used like cash by your child when they wish to buy something. Parents should keep the purchase receipts and teach children how to verify them against a statement each month. They should also be taught to deposit a percentage of their allowance.
For children under eighteen, some states will offer what is called a "custodial savings account". This type of account states the parent's name as the account holder, with child's name under it. When the child turns eighteen, ownership of the account can then be transferred to the child (now young adult).
Children can keep track of their money much easier with the use of ATM/debit cards. You should greatly consider opening a savings account for your child, as they are a great tool for teaching them how to save and track and manage their money. - 15465
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