With access to computers, the internet, and more, children are learning in new and innovative ways. Kids are even able to pick up new concepts and ways of thinking faster than some adults! While it may be prudent to protect children from learning too much too fast, there’s at least one area where the learning can start at any time: saving!
That’s right: saving. Even a baby can have a savings account! Of course, there are some requirements and rules for children as it relates to savings accounts. But if you’re wondering whether you should open a savings account for a child, the short answer is, “Yes!”
Keep reading to learn more about the why, when, and how of opening a savings account for a child.
Savings Accounts for Children: The Basics
Opening a savings account for a child is not the same as opening one for yourself. Savings accounts for children are usually designed for children under 18. The child and a parent or guardian act as joint account holders, which means you can manage the finances until your child is ready to manage them.
Youth savings accounts should be straightforward and free of most fees or special requirements. Ideally, parents will want to search for accounts with features such as:
- No monthly account fees
- Low to no opening balance requirements
- No additional or special fees or requirements
- Access to online learning tools and mobile apps
Lucky for Baton Rouge Telco members, we have accounts perfect for your children!
And, if you’re wondering if your child is old enough, never fear. Age is not an issue! You can even open a savings account for a baby as long as you act as a joint account holder.
Benefits of Opening a Savings Account for a Child
You may look at your son or daughter, grandchild, niece, or nephew, and think they are too young to consider saving. But the truth is that lessons about savings can start at any age. The benefits of opening a savings account can set your child up for future financial responsibility.
Illustrate How Banking Works
Sure, a young child knows a little about the concept of saving. A piggy bank shows that saved money can accumulate into a larger sum. While piggy banks are a great hands-on way to show your children the benefits of saving, it doesn’t show them how banking works.
When you open a savings account for your child, it is an opportunity to take them to your credit union and show them the entire process. A parent or guardian is needed to open an account for a child so you can be there for this milestone.
By opening a savings account and being involved in its upkeep, a child will learn about banking, credit unions, how interest works, and the benefits of saving.
Learn About Interest
Think about the concept of interest for a second. You deposit money in a savings account and it earns a certain amount of interest. To put it in terms your child can easily understand: You get paid to save!
Opening a savings account with even a small sum will clearly illustrate this complex topic for your child. As he or she grows, this knowledge will also develop and mature. Learning the basics at an early age will encourage more advanced learning in the future.
Promote Financial Education
Financial education may not be top on your list of things to teach your kids, but the ABCs of finances shouldn’t be overlooked.
By opening a savings account for a child, you give them insight into a whole new world. They can learn about banking basics but it may also encourage them to ask more advanced questions.
At Baton Rouge Telco, we believe education is an ongoing endeavor. We have materials and resources to help your children learn just as we can help you learn. It’s never too early (or too late!) to start!
Real-Life Financial Experiences
Learning works best when it involves real-life experiences. When you open a savings account for your child, you can take them to a Baton Rouge Telco branch and show them how to make deposits and withdrawals. You can introduce them to the ATM and how banking works within the credit union.
You can also help your child use the Baton Rouge Telco website and app to manage their account. Show them how to check the account balance, transaction history, and interest earned. These real-life financial experiences are invaluable education opportunities!
Selecting the Right Account for a Child
A savings account with no fees or special requirements is ideal for a child’s first venture into banking. At Baton Rouge Telco, we have several options perfect for children. Don’t forget: For all our youth accounts, there are no fees or minimums, competitive rates, and online and mobile access.
You and your child can visit us at one of our four branches and open an All-Star Savers account with just $5! You can also complete the process online.
Learn More: IRA CDs from Baton Rouge Telco
With an All-Star Savers account, your child will earn interest at a competitive annual percentage yield (APY). Plus, we make it fun with rewards when they reach certain milestones.
Does your child have a specific goal in mind? Sometimes, teaching about savings works best when there is a target.
Student Checking and Certificates
For older children who want to test the waters outside of a savings account, a student checking account may be a perfect fit. Designed specifically for students, this account will help them learn how to make deposits, withdrawals, and transfers using online and mobile banking.
With our certificates, deposit $500 and choose how long you want to let the money grow for your children. You’ll be teaching them patience and financial responsibility as they watch the certificate mature.
How to Open a Savings Account for a Child
Are you ready to get started opening a savings account for a child? It’s as easy as filling out the application online or visiting a Baton Rouge Telco branch. When you visit a branch, you can show your child exactly how a credit union works. After all, we are here to help all generations of members!
Learn more about youth savings accounts and how you can open a savings account for your child today!