The Value of a Youth Savings Account
One of the best ways to pave the way for your child’s future financial stability is to teach them the value of saving money. Research shows that children as young as three years old can understand the concepts of saving and spending. Teaching children how to manage their money is essential to developing economic success in the future.
Teaching kids about money and financial literacy can begin with the easy step of opening a savings account in the child’s name. Many community banks and credit unions offer special savings accounts for children and teens under the age of eighteen. Personal banking has become more convenient than ever. This makes it possible for parents to open accounts for their children when they feel they are ready.
Where do I start?
Before opening a youth savings account, be sure to shop around for the rates and features available. Pay attention to the interest rate, fees or minimum balance requirements, how to access the funds, and how the account can grow with your child.
The right age to start a junior savings account is primarily up to the parent. Savings accounts can be started at any age. Make sure your child is old enough to understand and be curious about saving money. As he or she gets older, consider opening other types of accounts that might help educate your child about finances and balancing their money.
See what questions your child has about money and savings. Use that conversation to guide your decision and search for the right bank. Learning financial responsibility takes time. Don’t give your child more than he or she is ready to handle!
What are the benefits of setting up a Youth Savings account?
- Your child will learn about money and finances. Learning to manage money in everyday life is such a crucial life skill. Help introduce the concept of banking early on in your child’s life. Concepts like saving, spending, and budgeting can be experienced.
- Your child will learn how banking works. He or she will learn how money can grow in a savings account.
- Saving money will become a habit. Having a savings account to deposit money after getting paid for chores or getting money from an allowance can develop financial responsibility. It becomes a positive, rewarding experience, and can help them realize that it’s not necessary to spend money just because they have it.
- Your child can set financial goals and learn to save for them. A savings account can be used to save money for a new video game or some other special purchase.
- Your child will learn how to make financial decisions about how to use their money responsibly.
- It fosters financial independence. By having and growing their savings account, children will learn that they don’t need their parents to buy everything for them – an extremely valuable lesson they can take with them into adulthood.
- Having an account of their own will make them feel special and grown up. It may even inspire them to learn more about finances!
How do Parents Monitor the Savings account?
A child under the age of 18 may not sign legal documents or open their own savings account. Parents set up a youth account for their child and when he or she is old enough, they can take ownership of the account.
Online banking makes it easier than ever to monitor your child’s banking activity at any time and place. Mobile apps and the bank website can be used to monitor the account balance and transaction history.
Experience is the best education your child can have when it comes to financial literacy. Setting up a savings account makes money management relevant to a child at an early age. Giving your child a place to monitor their money, interact with their money, and watch their money grow will equip them with the healthy habits they will need to grow into financially smart adults.
Jarrettsville Federal Savings and Loan put down roots in the community in 1869 as a strong, stable financial institution. Over the years, we have developed relationships that span generations. Our over 150-year tradition of community banking helped us to grow. Today, we continue to thrive, with checking, savings and loan products that meet our customers’ needs, technology that brings us into the future, and community service that gives back to our customers.
At Jarrettsville Federal you can be confident that your money is safe and secure. No account is too small! That is why we are proud to introduce our Youth Savings Accounts for teens and kids 16 years and under. We will offer a $25 match for any new account opened. Help your child develop good savings habits now at Jarrettsville Federal bank. For more information, contact us at 410-692-5151 or visit our website at https://www.jarrettsvillefederal.com/.