Getting your child set up with a personal bank account is a great way to start giving them real world responsibilities, all while being able to supervise and oversee their spending. Parents can help choose what type of account their child starts and they have the ability to monitor their child’s account activity. With all of the banking possibilities out there, how do you choose the right account for your child?
suggests these five things to consider before making a decision:
- Account fees and charges
- Interest rates and incentives
- Your relationship with the bank
- Ease of access
- If shopping online, consider a comparison chart
Regardless of the bank account you choose, your child will get hands-on experience with managing money, and learning the importance of making smart financial decisions.
After you set up your child’s bank account and they start saving money, make sure they know how valuable saving their money can be as they grow up. But more importantly, teach them when it is okay to make a big purchase with the money they have saved.
recommends these four tips to help your child make the right choices when setting out to buy something substantial:
- When you can, pay cash
- On a truly special occasion
- Don't make a habit of it
- If it can save you money in the long-term
Being knowledgeable about money is a valuable skill every child should learn. Help them get started saving today by visiting us at capfed.com/savings
and check out our First Blue Checking account (the perfect first checking account for teens) at capfed.com/checking
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Money Smart Kids, Strategies for Saving, Smart Spending