Savings accounts for kids offer far more value than a place to deposit money.
By giving kids the experience of depositing money into their account and then watching the numbers increase as they make more deposits, they are able to see, feel and experience the benefits of financial addition.
Unlike a piggy bank or money in a jar that can be accessed on impulse, savings accounts for kids require children to take a series of steps in order to access their cash. When children go to the bank to withdraw their cash, they learn to slow down and think through the impact of their purchase — before buying on impulse.
Savings accounts for kids allow them to learn that they have control over money, based on the choices they make. When kids have their own accounts, they are empowered to set goals based on what they feel is important, and establish the self-discipline to make the choices required to reach them.
Saving consistently is an important behavior that kids can learn by having their own savings accounts, even if they contribute only a small amount of money into their account every week or month. Little by little, they’ll see their balance grow, while absorbing an important fact of saving: Consistency is key. As they get older and start to earn money, the act of making consistent deposits can help them form positive financial habits.
The sooner you proactively educate children about how to manage their money, the more likely they’ll become financially savvy adults. Financial education can be instrumental in helping children develop health money habits. Check out the websites below for unique resources on teaching and engaging young savers.
This is not intended to be an endorsement by USSFCU.