Kids start requesting money at an early age, demanding money for school and in some cases allowances. As they grow into their teen years they start requesting to buy clothes, shoes and accessories, which requires for them to request more cash to fulfill these highly expensive and demanding fashion craves. Children should be made aware at an early age of the value and importance of money and savings for their independence as adults. Below you can read more on a timeline for children’s financial development
Kids are never too young or old to learn about money and savings but its best that you start to teach them as they enter preschool. Let them know the importance of saving and how it could help them in the future to get what they desire, including an education. At this stage in their young lives a piggy bank could be instrumental to demonstrate the definition of savings. A piggy bank will help them understand that their money is not taken away from them but instead that it is simply guarded somewhere safe.
Savings Account for primary school children
At this stage in their lives children should learn and understand the benefits and importance of having a savings account. Many schools work along with banks to teach children about savings accounts and how it is similar to their piggy banks. For example, Atlantic Bank visits various schools to teach children the concept of savings by using a savings account on the idea of making deposits. This also teaches children the concept of ‘interests’, the word much used by banks, responsibility and a few basic math facts. As they grow older and through high school they will be able to manage their savings account on their own.
Time for a checking account
If your child is old enough and responsible to hold down a part time job then is time to open a checking account. At this stage your child should be able to handle more responsibilities, such as the ones a checking account bring. A checking account could teach them how to use a checkbook and how to balance their books. Included in their number of responsibilities will be making their own bank transactions, using a debit card and saving at the same time, as taught in their early stages in life. Make sure not to get them a credit card at this point and discourage borrowing and the use of credit.
At this stage, your child should have a job and most likely accompanied with a large savings account and would probably be considering having a credit card. With a credit card on hand your, not so young, child will appreciate the lessons he had been given on the value and importance of money and savings. Having financial independence keeps them far from the idea of easy money from mom and dad.