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The Hood Magazine

Why Your Kids Should Have a Savings Account

Aug 23, 2021 ● By Voyage Federal Credit Union

By: Voyage Federal Credit Union 

It is a great idea to get your child set up with a savings account. Allowing them to have their own account gives them an idea of how to responsibly handle money. It also allows them to understand more about how a credit union works. If your child has accumulated funds from events like birthdays or Christmas, consider allowing them to place it into an account and grow their money. 

What Age Can They Open an Account?   

Any age works, a parent will just have to open the account with them. 

How Do I Open the Account? 

As a parent, you will need identifying information, such as a driver’s license, passport, or other government-issued photo ID. You will also need to provide you and your child’s birthdays and Social Security (or taxpayer identification) numbers. Lastly, do not forget to bring your initial deposit!  

Benefits of Opening an Account: 

- It teaches them to plan and save ahead. If they have something they want but don’t have enough money at that time, they will learn they can save their money to eventually buy that item. 

- It shows them that by putting their money into a savings account, it can grow. This process is through compound interest.  

- It helps them use real life circumstances to practice basic math skills. 

- They will learn how to deposit checks and cash into their savings. 

- They will learn the value of money and not to waste it. 

- They could learn the importance of budgeting and how this is a beneficial tool that can help them throughout life.  

- They are learning about finances and how to handle them, while a parent is keeping close tabs on their account. Being able to see their finances allows you to assist them and offer guidance where it is needed.