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By Emily Roberts
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It’s 2018 and the days of buying your kids a piggy bank are long gone. It makes much more sense to let your kids have a bank account that will not only help them keep their money safe but also teach them how to grow and save it. Unfortunately, it seems as if most modern banks offer little to no incentive for kids to save their money and many focus on charging them as much as possible.
Transaction fees and unexplained charges can easily chew up what little money you deposit. Many banks will continue to charge exuberant monthly fees on small balances to the point where everything that was deposited is gone within a few months. This is why it’s important for you as a parent to find the right bank account for your kids that will help them get the most out of their money and hopefully grow it at the same time.
1.) Check those transaction fees
Most bank accounts come with a PDF or pamphlet (depending on how you apply) that stipulate the charges for every type of transaction. Sometimes these numbers are changed without notice, so be sure to check the fees for each type of deposit, withdrawal, and transaction. Advise your kids to deposit their money through your account or an ATM at the very least, as doing it over the counter is expensive.
2.) Teach your kids about saving
Educating your children about properly managing their money should be done long before they leave for college. Teach them how interest works, how saving their money is the right thing to do, and how to budget correctly. This way, they’ll know how to manage their funds better when they become independent.
3.) Link their bank to your phone number
Doing this means you can see every transaction that goes through. All of these usually come from a single number, so it won’t fill up your inbox. Not only can you see where their money goes, but if its stolen or their bank accounts are hacked, you’ll know first.
4.) Speak to a financial advisor
If you live in a particularly populated area, it might be difficult to choose from the plethora of banks and bank accounts each has to offer. This is where financial advisor scould prove helpful. Let them know exactly want they want and pay attention to what they say when mentioning costs.
5.) Redirect fees to your account
Assuming your children aren’t going to be transacting huge amounts of money, it would make more sense if you can absorb whatever fees they incur. This way they’ll be much more motivated to continue using a bank account, whereas they’d otherwise be put off by the sight of their money slowly disappearing every time they deposit and withdraw it.
6.) Teach them how to use the account themselves
Show your kids the ins and outs of using a bank account: how to login to online banking, how to manage their statements, confirm transactions via OTP, etc. It will help them become independent much sooner and they won’t have to run to you every time they want to do something.
Emily Roberts is a young writer who is passionate about literature and blog writing.
