Why Your Child Should Have a Savings Account
April is Youth Month, and this is the perfect time to teach your kids about responsible money management. One of the best ways to do so is by opening a savings account in their name and helping them learn the basics of smart saving habits. Let’s take a look at why it can be a good idea to open a savings account for your child.
Teach the basics of saving
A savings account is a great tool to help your kid learn the value of saving money. By depositing money into the account on a regular basis and watching it grow, your child will learn the importance of setting money aside for the future.
Teach kids about money management
When your child has their own account, they begin learning to control their spending to a degree. This can lead to learning how to budget and spend responsibly. They’ll also learn how to manage an account at a financial institution, including balance tracking, depositing money and starting to form an understanding of using a debit (and credit) card.
Help kids save for a short-term financial goal
Turn the lesson on savings into a lifelong habit by having your child use their account to practice saving up for a short-term goal. Your kid can now save money from an allowance or part-time job until they have enough to fund their purchase.
Build credit early
Some banks and credit unions offer credit cards with youth accounts (ages and policies vary by institution) when owned by the parent. Having a credit card with their name on it can help your child start building their credit history early.
Prepare for the future
Starting a savings account at a young age can prepare your child for unexpected expenses in the future. As they age, their needs and expenses go up as well. The more you can help them prepare, the better off they’ll be in the future.
Build responsibility and independence
By managing their own money, your child will learn valuable life skills that will serve them well in adulthood.
To open a savings account for your child at Olean Area Federal Credit Union, call, click or stop by any of our branch locations today.