The Real Secret To Getting Your Kids To Save Money
by: WilliamBlake | Total views: 24 | Word Count: 496 | View PDF | Print View
When your child's piggy bank or other money collecting device gets full, it may be time to open an account at the bank. A bank account allows children to keep track of money they have saved more easily. Here are some types of savings accounts that parents may want to consider.
Opening a savings account is not difficult. Just choose a day when you and your child can go to the bank together. As long as your son or daughter has some money to put into it, you will be able to talk to a bank employee about starting up a savings account.
Statement savings accounts give reports to both you and your child at the end of each month that detail all transactions that were processed that are associated with the account. Any withdrawals or deposits made from or to the savings account will appear in the report.
When the report arrives, explain it to your child, reviewing all the information it contains. Show them how much money they started and ended the month with, going over interest earned and deposits and withdrawals noted. If your child can't remember what they did with money they took out of their account, write down the details of the transaction for them. This way they will be able to see for themselves just where they money is going.
Another type of savings account, passbook savings accounts use a small book to record the account balance. This book is passed through a machine that records deposits, transactions, and the current funds available. Many kids like having a passbook savings account because, whenever they want to, they are able to check on their account.
In addition to banks, credit unions of which you are a member will also allow you to open a savings account for your son or daughter. Some credit unions feature special savings accounts that have been designed just for kids of a certain age block. Such accounts often come along with free gifts and ATM cards with the child's photo on it.
An ATM/debit card can be used as cash by your child for their purchases. Parents can keep the receipts and teach children how to check them against their savings account statements each month. Allowance money can also be deposited in the savings account each month.
Custodial savings accounts are for kids with less than eighteen years of age. Available in certain states, this type of savings account displays a child's name under that of their parent, who is considered the account holder. After the child's eighteenth birthday, this style of account can be changed into the child's name.
Savings accounts are a great tool for teaching money management skills. Kids can keep track of their money easily and even use an ATM/debit card to make purchases or withdraw cash.
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