Does your kid need a current account?
Helping to develop a sense of financial responsibility in a child requires a lot of time and dedication, especially since many kids believe money grows on trees. One great way to get your child excited about developing important money management skills is by opening a kids current account, according to www.gobankingrates.com.
Numerous banks are offering great current account options for today’s youth, which makes opening one easier than you might think. Here is what it takes to get your child started with a current account.
What are kids’ current accounts?
Over the years, banks have recognised the value in teaching children financial responsibility. As a result, some have created a type of current account specifically designed to allow kids to deposit and withdraw money, as well as write cheques.
These current accounts for kids provide you with a way to show your child that money should be managed, not just spent, while making these concepts less abstract by letting him put them into practice.
Just keep in mind that, because a child under the age of 18 is unable to legally enter into a contract, you as the parent would sign up your child up for the account.
Benefits of opening kids’ current accounts
Opening a current account for your kids could offer a number of great benefits. Here are just a few:
Practical education: You have an opportunity to show your kids how to write cheques and use basic banking services while exploring the value of money management.
Early introduction to fees and penalties: When taking part in this financial system, there are rules to follow and repercussions for breaking them. If your children want to sidestep the rules set up by the bank, they will get an early introduction to fees and penalties — lessons that will carry over into adulthood.
Understand that saving is better than spending. Opening a current account will show your child that putting money away for safe keeping is better than leaving it lying around, waiting to be spent.
It is also important to note that opening a current account early allows your kids to get a jump on their peers so that, by the time they are ready to go off on their own, they will be less likely to feel intimidated by the banking system.
Also, in addition to opening a current account, you could consider opening youth fixed deposits, educating through books and taking advantage of other innovative ideas to teach money management.
Financial responsibility is incredibly important, especially since today’s young people are living in the middle of difficult economic times. By getting your kids started early, you are giving them the opportunity to develop the money management skills they will need well before they enter adulthood.