Savings bank accounts for teenagers

Savings bank accounts have become pretty popular these days given the increase in disposable income among the population. There was a time when people used to stuff their cash under the mattress, but we have come a long way since that time. These days, even children and teenagers have started having savings bank accounts!

A savings bank account for children will give you a lot of advantages. The shall discuss the most obvious amongst them.

Opening an account for your child at a very young age and giving him or her full control over it will give them a sense of financial responsibility. It is very important that your children learn the importance of saving and making an account of expenditure and learn the skill of budgeting from a very young age. The sooner they learn, the better for them. Budgeting is a very unique skill that cannot be learned very easily. Some people learn it pretty soon, but the majority of us have to learn it the hard way. But the best way to teach it is to teach by example. If you are good at budgeting and ensure that you save a little bit of money every month, you will ensure that you have a secure financial future. Teaching your child to manage his or her money is one of the most important skills that you can teach him or her.

You can give out a small bit of money as pocket money every week or month. And when you do so, ask your child to save as much as possible after spending on bare essentials. Now bare essentials for a kid would obviously mean candy and amusement park rides. But again, it is very much possible to save no matter how much you hand out to the kid. Teach then to save with whatever you hand out to them. When you disagree to give them more money whenever they ask for it, it will make them learn to save. And also try to make them work for their money. Its important to learn the value of money from a young age.

A lot of banks offer zero balance and no fee account for kids below the age of 16. This is because they want to catch them young. And this is good for you and the kid. One does not need to set aside a large amount of working capital in a bank account in the name of a kid. And you do not need to even pay any fee to the bank every year. This is good considering a normal kid would have around ten bucks to deposit every week. Now this is for the average American family which would not want to spoil the kid. Also inquire about special offers and promotional interest rates. A lot of banks will want to get a kid on the list of accounts given that the money invested is usually going to be a dormant account fund. And the major benefit for you would be that by the time the kid turns eighteen and has to go to college, he or she would have a major portion of the tuition fee saved up.