Children in their developing years can have an opportunity to start learning how to save money, which may help them manage their finances when they grow up. You can help your children save with our youth accounts, for they have no monthly account fees and include a Visa debit card.
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What is a Youth Savings Account?
A youth savings account lets you have joint ownership with their account. Also, it gives you a first-hand view and can monitor their transactions and guide your children in handling their money. Additionally, such savings accounts are designed to have much more perks than regular banking accounts, such as having no monthly account fees or having low or completely no opening balance.
Once your child turns 18, the youth savings account will be converted to a regular savings account, and the parent or guardian won’t be included as the joint account holder.
What You Can Benefit From a Youth Savings Account
Besides having money secured for your child’s future, smart parenting makes managing money easy with the benefits of getting a youth savings account.
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1. Financial Literacy
A youth savings account provides a way for kids to have financial literacy regarding managing their savings and possible debt in the future. It gives them control and how to manage their expenses, make a budget, and know the basic concepts of taxes and investments at an early age.
This will help them get exposed to how money should be earned and spent wisely and somehow know how to be financially flexible, even to economic stresses in the future.
2. Creates a Sense of Responsibility
Your children have financial literacy and savings accounts so that they can monitor their transactions better. They have a sense of responsibility to have self-control in spending and saving money. Plus, they get to have a sense of prioritizing their needs over wants at an early age.
3. Teaches the Value of Money
Your kids will be taught the value of money when they have their savings account since they’ll be the ones to maintain their savings. They’ll be able to realize that the money given to them is hard-earned money from their parents’ fruit of labor.
You’ll also be able to teach and let them realize that they’re lucky enough to have financial security and be able to save on their own. So they’ll be more mindful of their priorities when spending money.
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4. Learn to Have Financial Goals
Setting your kids to have their financial goals when it comes to saving makes them more motivated to achieve each step towards them. You can start by encouraging them to buy toys or gadgets on their own through their savings.
5. Be Able to Create Banking Relationships
Through their youth savings account, your children can be exposed to creating connections and establishing banking relationships with financial professionals. They can learn a thing or two from these professionals on how they utilize other banking services on loans, budgeting, and investments.
Let your kids learn from financial specialists. In this way, they get to know their habits and know basic concepts about what they can do with insurance to secure their finances.
6. Let Them Learn About Investments
More than saving money, you can help them to learn about growing their money through investments. Teach them the basic concepts of inflation to understand that they can secure their money more if it’s growing since prices of commodities can increase yearly. As a result, they can start their investments at the bank their youth savings account is in.
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7. Tax Benefits and College Fund
Depositing on your child’s savings account has tax benefits, as sometimes the money you put into the account isn’t taxed. Generally, the deposited money may be used for your child’s college fund and other things that need funding to secure their future.
Educational funds, especially in college, should be saved at a young age because they do not bear many college loans in the future. It’s really important to consider future expenses your child might need, such as summer camp trips, school supplies, a new bike, or gadgets. This may affect your family’s savings and source of income.
8. Creates Good Saving Habits
With their youth savings account, they’ll be able to practice and establish good saving habits where they can make budgets and certain allocations for their wants and needs. As they make a habit out of it, they’ll know what to do with the money once given to them and bring this habit as they age.
They may start a good saving habit from the money earned from allowances, part-time jobs such as babysitting, or doing household chores.
9. Safe Way to Secure Their Money
You may start teaching them good saving habits through piggy banks, but as soon as they grow older, it’s time to secure their money in a safer place. Piggy banks may get misplaced or stolen compared to saving their money at the bank. Plus, they’d feel more mature and grown up if you trust and talk with them about how they’ll handle their money and other financial matters.
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Is My Child Eligible for the Youth Savings Account?
Youth savings accounts usually have joint ownership with their parents or guardian and don’t require age requirements for children. Do you want to save college funds and have other long-term financial goals for your child? If so, you should start early and educate your children about other financial products before they reach the age of 18 and have their regular savings accounts.
Open Youth Savings Account Now!
While kids can still absorb new and great amounts of information, it’s important to teach them how to handle their finances. They can carry this financial literacy with them when they grow up. As a result, it won’t be hard for them to adjust later in life since they already know how to handle their money and have financial security and freedom.
