One of the rites of passage for children is when they get their first bank account.
But when is the right time for kids to start banking? And, what are the best practices for parents?
In this article, we’ll answer these questions and provide some tips on teaching your children about money management.
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Having a bank account can help them understand the importance of budgeting and financial responsibility while still being able to make purchases safely. The general consensus is that children should be around 12-13 years old before opening a bank account. At this age, they’re mature enough to understand the concept of money and how to manage it responsibly.
Many banks enable parents, grandparents, and legal guardians to open an account for babies in order to get a jump-start on the child's future finances. Depending on the financial institution, there may be limitations as to if the child can have a debit card based on age.
It's also helpful to make sure that your child has a debit card attached to their checking account so they can learn how to use it. Psst... many financial institutions offer teen checking accounts which are usually available until the child become 18 years old.
QUICK TIP: Benefits of a Skyla checking account - including a debit card - are available to anyone 18 years or older. But our savings accounts can be opened by anyone, regardless of age. |
Having a bank account can be beneficial for children in many ways.
Many financial institutions make opening an account for a minor straightforward and can be done in person or online. The parent or legal guardian will need to provide some basic information, such as the child's name, date of birth, and address, as well as your own identification. Additionally, you may need to provide proof of income or other documentation depending on the bank.
Once you have opened the account, it's important to sit down with your child and discuss how to use it responsibly. This will give them a better understanding of money management and help teach them valuable lessons about saving for the future.
If your child receives money as a gift, it is important to talk about the best way to use it. You can suggest that they save some of the money for a larger purchase in the future, and then set aside the rest for short-term goals such as vacations or movies.
It's also helpful to encourage your child to be responsible with their money by setting up a budget and working to stick to it. This will help them learn the importance of saving and spending within their means.
Overall, teaching your child about money management from an early age can be beneficial in helping them become financially responsible adults. By following these tips, you can give your child the tools to make informed decisions about their finances which will prepare them to handle their own money as they grow older.
QUICK TIP: When at the store paying for a purchase, have your child with you - in fact, include them in the transaction when paying the cashier. This will give them hands-on experience of how managing money works. |
To get started, reach out to your local bank or credit union and ask about their offerings for kids.
Want to open an account for your child at Skyla, we're here to help! As always If you have any questions or comments, our Customer Service Representatives are here for you. You can send an email, give us a call at 704.375.0183, or visit any of our branches.