Financial education is crucial to long-term success – and that education begins at an early age. Research suggests many of the habits we carry into adulthood are set by age seven.
For parents, it’s important to lay a foundation early that children can build on. Gifting a child a bank account this holiday season is one step to promoting financial literacy, empowering them to learn and develop healthy savings goals and budgeting habits that can help set them up for future financial success.
Unlike a regular savings account, a child’s savings account may come with additional perks, including no monthly account fees or opening balance requirements. Additionally, banks often create original content for younger audiences, making it easier for kids to learn responsible money managing basics.
Often these learning tools are online/mobile – for example, Chase provides new young customers with The Quest, an animated graphic novel that teaches kids about saving regularly, spending wisely and earning money – to help boost your child’s financial education.
Opening a savings account for your child can:
Help them learn more about saving money. Teach your kids how to plan and prioritize their costs. Help them develop a realistic budget to build a foundation and monitor their spending.
Save money for a specific short-term financial goal. Take the opportunity to encourage your child to set aside funds in their savings account to make a special purchase – whether it’s saving up to buy that new game or bicycle they’ve been wanting.
Provide hands-on experience. Kids often learn by doing, so consider opening a child savings account as soon as they start receiving money. Empowering them with a child debit card can help build good money
Teach them more about banking. Your child can learn how to deposit checks in a branch, bank online, and withdraw cash at an ATM by helping co-manage their account.
Building a Healthy Financial Future
Opening a kids’ savings account provides a natural avenue for parents to talk to children about their financial wellness and, while they often don’t pay high yields, these accounts are meaningful tools to start a child on a responsible financial path from an early age.
It’s important to provide ways for kids to earn money through chores, an allowance or a summer job. Long-term, the goal is for children to gain real-life experience earning and managing money when they become adults.
That way, they will be more equipped to be part of a larger discussion about debit cards, credit cards,auto loans or other financial products they may need as they enter adulthood.
Visit chase.com/parents to discover more tips and tools to teach your kids good money habits.