Even my three year old asks to take money out of his piggy bank to buy ice cream while we are out, so this begs the question – when IS the best time to set up a bank account for the kids? I feel like it’s never too early to teach your kids the importance of money – earning, saving and spending. So I feel more inclined to let Luke buy something small while we’re out with his own money but my husband feels it’s more important to emphasize teaching him to save his money. He makes a good point…without saving your money there is no spending! Both are equally important lessons and with most things in life, balance is key!
I know a lot of people who set up bank accounts for the kids from birth, because they have family and friends who prefer to start sending money as gifts for their savings early on and others who wait until they are old enough to understand the value of money. Either way, it’s a great way to help with their savings and teach them the importance and value of money from an early age.
We’ve known relatives who have started special savings accounts which I love because they are education based and as the kids turn 18 they are able to use the money towards ANY educational classes, not just college classes. So if they decide to take cooking classes, art classes etc. they can still use the money that’s been saved for them!
What’s YOUR preference for when to open and bank account for the kids and how have you managed it? Do you have family and friends send money for a bank account to start the kids savings early or are you planning to wait until they get their first job as a teenager??