Using The Childrens Savings Accounts Efficiently
Children’s savings accounts are usually perceived to be accounts for adults to stack up funds but can actually prove to be helpful in teaching children the dynamics of responsibility and money management from a young age. The fact that the child’s account has to be jointly managed up to 18 years of age also give parents the required control to ensure that children do not overstep or misuse funds. However, getting the right account is important to save charges on account opening and other subsequent transactions.
Here are some tips for getting the right account for your children to start saving effectively:
- Don’t fall prey to marketing gimmicks: There are a lot of banks in the market that offer explicit savings accounts for kids, stating that there are no monthly fees or low-charges for account opening. Despite these claims, almost all choices are similar to the regular bank accounts that have nominal rates with low monthly fee requirements. In the case of children above the age of 15, picking a regular account would be the best option compared to a children savings account.
- Choose an account that can track spending and saving patterns: In order to help your children understand money management effectively, give them a progress report of all their financial decisions on a monthly basis. Most online banks have these inbuilt analysis options that can generate regular reports as well as provide budget planners for planning ahead on funds.
- Teach the physical banking system: While online banking is a feasible option that bankers enjoy, taking your children to experience the workings of a physical bank would help them appreciate the evolution of the financial world. Children also get to handle their accounts physically rather than at the click of a button.
- Other savings options: Despite a savings account being a great choice for helping kids save resourcefully, children shouldn’t have to rely on only this mode to save for college or other future plans. There are specific plans and investment options available exclusively for college purposes.
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