Several children of my Mommy friends have had their own personal kids savings account at a bank since very early on. While my husband and I have our own account, I never took my son to open one for himself. I had the best of intentions through the years but here I am revisiting the subject so you can gather that I never got around to it lol. My son has quite a bit of money saved now from recent occasions and I'm going to take him to open his very own account before school starts. I think this will help him learn how bank accounts and interest work. Hopefully it will also motivate him to save more in the future. Right now I am trying to talk him out of buying a $40 toy that I know he will be tired of in a few months!
Do any of your children have an account? Did the bank offer any type of incentive to children opening a new account? I've heard of a bank where I live giving them a new "piggy bank" when they sign up.
~ Christine ~ Mom to 2 busy boys and one spoiled lil' girl
Yes, all three of ours have saving accounts. Our youngest is three, she has no clue. Our son is 7 and would rather spend every penny he gets on legos. Our daughter that is 9 is very aware of how money works, saving and spending.
Any gift of money they receive goes into their savings. We have a 60 40 plan, they get to keep 60 percent of what ever they have and 40 percent goes into their account. I know the younger kids don't understand the concept but it has been wonderful for our oldest.
When they are ready to go off to college they get the savings and the hope is that they have learned by then how to manage their money. The deal if they don't go to college, they don't get all of the money, only 40 percent of it. The reason behind this is because we have an automatic deposit every pay period that goes into their savings. The money is intended for college years so if they don't go, they don't get the money.
I wish that someone had taught me how to manage money. I would rather have been taught then had to have learned the hard way.