One of the most important lessons children miss to learn in school is understanding finances. While the system can not be changed as a whole but parents can make sure that children learn about finances. The first step towards it is opening a savings account as it will help children learn the most basic things.
Opening a savings account also has benefits for both, children and parents. We tell you some reasons that will convince you to open an early savings account for your kids.
Kids learn about banking
It does not have to be complicated, just educational. Banking is something we all deal with as adults so it is important to lay strong foundations. Explain to them how the bank works, what is a savings account and how they can save money.
They will learn how to save
If your children receive pocket money and are willing to save up money, it is time to switch the piggy bank with savings accounts. This way, they can also learn different ways to save money and with age, they can understand compounding and interest.
Kids can become financially literate
We all struggle to understand the bank and loan system as adults so if children learn this from a younger age, they will feel more confident in their financial decisions.
No minimum balance requirement
When opening a savings account for a child, the bank allows to keep no minimum balance and there will be no deductions. Other offers vary from bank to bank.
This motivates them to be smarter with money
Children take new learnings as an exciting way to grow. If they want something, you can encourage them to save up money and instil a feeling of independence in them. This will encourage them to be smarter with their expenditure as well.
Did you have a savings account as a child?