Should you get your child their own savings account?

Researches show that the best stage to teach a person good values and practices is when they are still kids – the age when they can easily adopt things which are taught to them. Yes, you’ve probably told your kid about the importance of saving but explaining this alone would not be sufficient. As a parent, you can go ahead and open a child bank account for him. Have your kid start ‘feeding’ his piggy bank, you can collect them maybe monthly or every other month and have a trip to the bank together.  Should this be your first time to open a kiddie bank account then here are some of the things you need to know and consider.

Kids tend to get too excited. When he has completely absorbed the idea of saving, he might make going to the bank at a regular basis a hobby. With this, the location is a very important factor. A local bank near or in your area would be the best option.

Regular savings accounts require maintenance fees.  Check this aspect with your bank.  The best children savings account is one that does not have a monthly maintaining fee. You too should ask your bank representative whether they put limits in making small deposits.  There are banks that apply charges for accounts which have become inactive.  It will also be of great help if you read the fine print when opening for an account. Should there be some terms and conditions that you can not understand, the bank representative can always answer them for you.

The best bank that you can start researching on would be your own bank (if you have a savings account with a certain bank).  In case your bank does not offer children savings account or it can not meet the needs of your child, then a credit union is the next best place to check on since they usually offer lower fee. When you don’t have much time to go from one bank to another, the World Wide Web can lead you to online banks that offer children savings account.  You can teach your child the concept of online banking as well should you choose to do it this way.

Inculcating the concept of saving to your children will turn them to be a person who values each and every cent he holds when he starts earning his own money.