Every parent knows that healthy habits start at a young age. You strive from the beginning to get your child into the best schools, teach them manners and generosity, and make them good productive people when they step out into the real world.
One of the best ways that you can teach your child responsibility is by opening them a youth credit union savings account when they're old enough to take responsibility for it, or even before. If you're wondering what the benefits of opening a savings about for your child are, read on below to find out.
6 Benefits of Opening a Savings Account for Your Child
Teaches Them to Plan Ahead
Whether it's saving for a new gaming console, a car when they turn sixteen, or those expensive shoes you refuse to spend money on, a savings account teaches your child to plan ahead and becomes a great tool for teaching them that you have to save for what you want.
Teaches Them the Basics of Interest
For many people, math is the worst subject out there, so teaching kids about interest through their own savings account is a great thing. Make it a fun lesson once a month. When you get the statement from the bank, sit down with your child and show them the dividends they're drawing on the money they have in the bank. Explain how and why this money is showing up in their accounts, and explain how it will continue to grow, and how to make it grow more.
Helps them Stay Focused
The old adage "out of sight, out of mind" has never been truer than when dealing with children and money. If their money is saved in a shoebox or in a piggy bank on their dresser, it's much more tempting to break it out and spend what they have. When their money is in a savings account, it's easier for them to stay focused on the goal ahead. It's easier to save for that Xbox Series X when the money isn't staring you in the face.
Teaches Basic Math and Transaction Skills
Whether you're conducting business online or at the local branch of your bank, make sure to take your child with you, so they can witness the transaction. This will help teach your child basic math and transaction skills, skills that they'll need as they grow older, independent, and more resilient.
Teaches Them Patience
Patience is one thing that kids and most adults run short of on a regular basis. Opening a savings account for your child and taking them to put their hard-earned allowance, birthday gifts, or other money into it teaches them patience by teaching them to save and wait for the things they want. Make sure that you do this in a fun way, or the savings account will soon lose its luster and seem like just another chore. For younger kids, it's a good idea to make it a game or even get a sticker chart to help them keep track of the money they're saving, and how close they are to making their goal to buy that toy they've had their eye on.
You Do it Together
One of the best things about starting a savings account for your child is that you get to do it together. From teaching them patience with a game to going to make deposits together, this is a bonding time that you don't want to miss.
These are just a few of the top benefits of opening a savings account for your little one. Do it now, before they're older, and soon they'll have money, patience, and the need to save for what they want.