Kids love more of a good thing. More dessert? Love it! More time on the playground? Yes, please! More money? Of course. That’s why opening a youth bank account is a great idea, because it helps kids and teens get more from their money.
A strong financial foundation from a young age can make a huge difference in money management and financial wellness. Opening a youth bank account is the first step in a bright financial future!
Here are some of the benefits of opening a bank account for your child or teen:
Help Kids Learn About Money
Money is an important part of life, so the younger a person starts to understand it, the easier it will be. Opening a youth savings or checking account is a great way to introduce financial concepts to a young audience.
For young children, opening an account allows you to start having conversations about money management in an age-appropriate way that grows with your child. This lets them build financial confidence in a natural way, because it becomes part of their everyday habits.
For teens, opening an account introduces financial responsibility that helps them start building crucial skills they will need as they move toward adulthood. Having their own account makes it easier to teach about budgeting and saving money in a tangible way.
Gain Banking Skills
Beyond learning about money, having a youth checking or savings account can help introduce banking concepts to a younger audience. Making deposits and withdrawals or seeing how interest can help a small amount of money grow over time is a valuable life lesson for any age.
When it comes to youth checking accounts, these lessons might be able to go even further if the account comes with a debit card, as it offers the opportunity to get real experience in money management. No need to worry about a surprise spending spree, grown-ups! Youth accounts require joint ownership from a parent or guardian, so you’ll always know what your little spender is up to.
Youth checking accounts often have age restrictions, so make sure to check with the financial institution for specifics before going to open the account.
Teach Responsible Habits
Kids and teens can be impulsive, especially when it comes to spending. When a kid has a dollar in hand and an ice cream truck comes rolling by, it’s easy to spend in the moment without a lot of thinking. A youth bank account helps create healthy money habits.
When money is in an account, it naturally creates a pause before spending. It can also teach about smart saving techniques, like saving a certain percent of money earned. Kids and teens can experience the pride of saving or learn about the consequence of spending without a plan.
Save for a Specific Goal
Saving for a specific item can be a very impactful way for young people to learn about money. It helps them learn patience and decision-making regarding their money, because they get to experience the payoff that comes with working toward and reaching a financial goal.
When a child or teen saves up for something they really want, the true value of a dollar becomes clear. These small lessons go a long way toward making a big, positive impact on how they handle money in the future.