Is your child ready for his or her own bank account? A savings account can offer your child a little extra savings in interest as well as added responsibility, so if you hadn't considered opening one with your child yet, this may be a good time to start researching your options.
Before opening a bank account, consider teaching your child about financial responsibility and trying some exercises that can measure how well your child understands budgeting. To kick off this lesson, take a look at the budgeting and financial responsibility worksheet below.
Once your child has completed the activities and has a good grasp of financial literacy, you may want to start considering his or her bank account options.
What to Look for in an Account
You're going to want to do your research before opening a bank account for your child. But do you know what to look for?
Consider a savings account. When your child is in his or her late teens and is making bigger purchases, a checking account may be appropriate. But until then, why not think about opening an account that compounds a little interest and teaches the value of saving?
Accounts with no minimum balance or maintenance fees can be a favorable option, whether your child can make the minimum balance or not. The goal is to teach your child that saving money is a good thing, so having fees and ...