Modupe Gbadeyanka
Kids’ savings accounts normally give parents joint ownership. That means mummy and daddy can manage the finances until the children are ready to do so on their own.
Before opening an account, take some time to find the best bank, or an online-only bank for parent and their child.
Keep an eye on the following:
- No minimum balance requirement or monthly maintenance fees: Children should see saving as a good thing.
- A good interest rate: parents should look for an account that can attract interest rates.
- Online or in-person access: Walking into a branch office is a good way to help children become familiar with routine transactions involving their account. Children online habits – even financial – can be important, too, so features such as monthly statements and controls on payments and transfers from savings accounts should be checked for. Children can teach money management and Internet safety together.
- Additional perks such as ATM card: An ATM card can show children how transactions work and how to withdraw cash when the parents are not available.
Opening a savings account for your children is not much different from getting a new account for yourself. Once you have found a good bank, schedule an appointment to visit a branch office. Encourage your child to put money in the account for the first time that day, and see if the financial institution offers candy or other freebies to reinforce the positive experience.
After putting money into your children savings account, start teaching them how to perform basic banking tasks. Demonstrate how to use an ATM to deposit birthday or holiday cheques or money earned from chores.
Prioritizing saving over spending is a valuable life lesson, one that takes time to learn. Opening a savings account for your children is one of the best ways to introduce that concept at an early age.
http://afslnigeria.com/2016/12/08/what-to-look-out-for-in-childrens-accounts/
