Accounts for Kids

They say it’s never too early to save. But should that include your children?

Yes, indeed it does!

Now we don’t mean to have your child working at the prime age of 6, but we do mean thinking of the options for your child’s long term financial future.

There are a number of options to help your child plan for their financial future. Whether that means having a safe place for them to store their chore money, or simply setting up an account to help them in the near future there are many opportunities for youth that will allow them to be financially responsible while earning some interest! 

If you want to teach your kids the ins and outs of financial literacy one of the best places to start is by opening your child a savings account. There are a number of banks and credit unions that offer account options that can be opened under your child’s name. 

Kids Saving Account Vs Custodial Account

The first part in opening your child’s savings account is deciding what kind of savings account.

There are typically two options when it comes to savings account options. If you choose to open a savings account, you and your children will have joint ownership over the account. A custodial option means the account operates as a gifted asset that your child owns but cannot access until 18. 

Why To Open Your Child A Savings Account

Outside of the obvious aspect of saving, why should you open your child a savings account? There are a number of reasons including: 

1. To teach your child and help them learn about banking
2. To teach your child how to save for a specific goal 
3. To teach your children banking guidelines and establish a balance of saving