Savings accounts for children?
Today there are endless young people who do not have the slightest idea of how to organize their expenses or how much money they should be saving monthly. And in many cases it has to do because when they were little, that was not an issue that was played at home. Although it seems a lie, habits that are created since childhood, are much easier to maintain over the years, and in the financial aspect there is no exception.
Sharing with your children what it means to save and why it is important will save you a lot of headaches as they grow and move from stage to stage. Now, to do this you have several options and a very interesting one are the savings accounts for children.
As you read, many banks allow parents to open a savings account for their children and can deposit their money there. Depending on the bank, you will have benefits such as unlimited deposits (since the idea is to deposit your money, not to withdraw it) and even debit cards with designs.
But will it be a good idea?
The answer to this question will depend on the use that is given to the account. This loses the objective if every time they want money, you give it to them and then deposit it into the account, because you basically keep giving them what they want, without showing them that generating money involves work.
And, to teach your children about saving, it is necessary that they first understand how money is generated and how it is earned. So, if you want to open a savings account for your children, be sure to follow it with some other practices or examples that will be of great impact to their lives. Here is a list:
Begin to earn your own money
This idea is a classic, but not less effective. If you gave away tips before, now give them a reward for performing certain additional tasks to which they should perform. For example, if they know that it is their responsibility to make their bed, you will not pay them to it, but if, for example, they wash your car, fold the clothes of the whole family, etc., you can give them “a payment”.
Let them “invite” with their money
If they have already earned an acceptable amount, ask them to buy the soda for lunch or something similar, which is comfortable but that they can afford with their “profit”, and thus understand that everything you buy costs.