How to Open a Children's Bank Account

Opening a children's bank account can be a fun and rewarding experience for both parent and child. It's a positive way to teach your children the importance of budgeting, planning, saving, and financial responsibility. Many banks cater to younger customers in the hopes of keeping them loyal when they become adults. Opening a children's bank account and creating a spending and saving plan is an important step in preparing your child for adulthood.

Instructions

1. Visit your bank first without your child to find out about the types of children's bank accounts they offer. Many times, special incentives and programs are available for juvenile accounts, which the banks view as an investment in creating future loyal customers.

2. Set up an appointment with the bank which your kid should also attend. Explain to the child what a bank is - that it is a place to put your money for safekeeping and it can gain interest over time.

3. Allow the bank associate to speak with your child at the appointment, and make them feel like they are part of the process. Make sure you get the child's name on the account, and have all mail addressed to them. This will help them feel more grown-up and responsible about having a children's bank account.

4. After the children's bank account is opened, take your child shopping and purchase a binder, which will be used to organize bank statements and expenditures. Keeping track of expenses is a valuable lesson for a child, as they can use this knowledge when they grow up for budgeting, taxes, and finances.

5. When your child's bank statements arrive in the mail, go through them together and explain the interest and other sums. Take your child to the bank and make a deposit into the children's bank account on the same day you normally give their allowance. This helps to create a positive habit of saving before spending.

Tips & Warnings

• Keep things organized and simple. Prepare explanations of any questions your kids might have before bringing up the subject of children's bank accounts. This way, you'll be better able to help them understand and encourage them to save money.