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??
{ 6 comments… read them below or add one }
Both mine have accounts. When they were baptised they got a lot of monetary gifts. That is when I opened the accounts at our small local branch in Wyoming. They are so great there and know the kids names and us personally. I had an account there when I was little as well. When I sold most all of Ava’s baby clothes since they were shower gifts for her I put all that $ into her account. They both have a great start on their savings. Now if only I could convince people to gift them cash as gifts instead of all these blessed toys!! :) How are you? Baby yet?
Great idea to put money there from her old clothes – love that!!The toys do get overwhelming!!No baby yet, due date today – Doc think s she will be similar to Luke being a couple days late. I was out walking a lot yesterday so had high hopes for last night! :)-Kimberly
Both of my kids had accounts opened the day I got their social security cards! I will be doing the same thing when we get the new babies card! The boys love going in and making deposits. We have even gone into the bank to deposit a roll of pennies! They save money up in their banks and as soon as the change hits a full roll off to the bank they want to go!
Great idea for saving coins and taking them to the bank!-Kimberly
We set up our kids accounts just weeks after they are born. We receive money from family and friends for the birth and instead of spending it, we start a savings for them. We also have a college fund set up that any of our kids can access eventually.
Check out my blog post on the little homemade savings we do with extra little money… .http://www.sunnyoharas.blogspot.com/2012/07/projects.html
Great ideas – thanks so much for sharing Jill!! :)-Kimberly