How to Open a Bank Account for Your Child
Teaching children to become savers is an important lesson, and one that will pay big dividends down the road. Teach your children well, and they will be the savvy investors of the future, and you can start by opening their first bank account.
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Instructions
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Discuss the meaning of savings with your child. Explain the reason why we save is so that we will have money in the future. Teach your child about how their money can grow as it gains interest in the bank.
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Set up an account when your child starts receiving an allowance. With your child, sit down and draft a plan for saving and spending. Decide what percentage of the allowance should be saved each month. A monthly plan will help your child develop the good habit of saving and spending wisely.
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Look for special kid-saver plans at your personal bank, a good starting place. Unless your child has a bona fide job and lots of money to invest, a traditional account will gobble up your child's savings with fees. A child's saving plan should offer low or no monthly maintenance fees, a low monthly balance requirement and a low minimum deposit.
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Open the account in the child's name if possible. Your child will feel more ownership in the process, because, after all, it is her money! Allow the bank associate to explain the account so that your child can understand more fully.
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Let your child fill out the first deposit ticket.
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Explain the bank statement to your child when you receive it in the mail. Go over the math, and point out any interest earned during the period. Help your child organize the bank statements in a binder (a much better idea than throwing them in a drawer!)
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Make a habit of taking your child to the bank monthly to deposit savings.
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