Bless your child with a student savings account

Having a student savings account is not a new thing. There was a time, not so long ago, when the US schools would ask the students to bring small change like pennies to the school to deposit in their account. The students would then later be educated about the ways of reading the passbook and the accumulated interest. But then slowly this trend vanished away. This does not mean that one cannot teach their children the value of money. You can open a student’s saving account for your child for him to save his monthly pocket money instead of spending it on his whims and fancies.

Opening a student savings account is a great way of making your child learn the importance and the value of money. When you as a parent will fulfill his educational needs with this money it will make him understand the value in a practical manner. Instead of lecturing him to save money, show him the practicality of the situation and how to do it. This will establish a sense of responsibility in him and hence forth this incident will help him save money or at least try to do so.

One of the many differences between the student savings account and a conventional savings account is that a student’s account does not require a minimum amount of balance to be maintained. Even a monthly deposit of a small amount can keep the account running and will guarantee interest on it. This is a step taken to encourage the student to deposit more money and cultivate the habit of saving money. This habit will help him in the long run to fulfill his educational needs if he wants to go in for higher studies.

This step of opening a student savings account will make your child learn not only the precious art of saving money but also how to double up the money as well as managing it. This will make him financially independent. Setting up an account for him can also make him independent i.e. your child will not have to be dependent on you for his or her education or related expenses. During any unforeseen circumstances, you are assured that your child can still pursue his dreams irrespective of your financial troubles. So if you do not have one opened for your child then this is time to do so.