In a day where people are predicting the second depression, guardians worry about how their children will survive in a financially starved society. They remember their own youth. The emotional angst they underwent when they embarked into the real world and realized how much surviving cost. To prepare their children, guardians want to give a financial grounding. So they open savings for child, teaching them the importance of saving for future expenditures.
When to open an account depends on the individual families. Guardians who give their children allowances may open an account for them as early as five or six years of age. Others may wait until the children are twelve and thirteen, when they begin babysitting and mowing lawns for a little money. Savings accounts require thought and attention, so guardians should decide when the children are ready to take on the responsibility.
A bank representative, such as at Bank of America or Wells Fargo, can help guardians establish accounts for their children. He or she will ask the guardians to sign papers validating their responsibility in paying any overdrawn funds the children may make. After all, it is not the responsibility of the bank to teach the children to balance their accounts.
Once the papers are signed, a deposit must be made to the new account. The deposit amounts differ for each bank, but Bank of America requests $100. The guardians must pay the fee if the adolescents cannot.
Opening an account will do no good if the guardians neglect to teach the adolescents the importance in saving. They could begin by showing their dependents phone and cable bills, explaining how they pay the bills with their income from work. They can teach the obligation to save for emergencies and taxes to teenagers working part time jobs, emphasizing on the wisdom in saving portions of their income when possible.
Do not let children grow up and learn financial responsibility the hard way. Teach them the importance in budgeting, allocating their income to both pay bills and save. After all, the more money in the savings accounts, the higher the interest payments. If guardians truly care about the emotional and physical security of their children, then they will open savings for child and provide them with a solid base to go out in the world and succeed.
Start developing your child’s financial skills. Start today to enhance your child’s financial future. You can learn more about teaching kids about money at our site. How To Save Money As A Teenager