Opening Your Kid’s First Savings Account

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Saving For Child
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Opening Your Kids First Savings Account
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• Your child may already have an idea of what a
  bank is and does, whether from books, television
  or even Harry Potter. But if your son or daughter
  asks whether goblins really run the system, it
  might be time to set the record straight by
  opening up his or her first savings account.
• As well as providing children a glimpse into how
  banks and credit unions actually work, opening an
  account also gives them a place to stash their
  allowance and birthday money.
• Here are the most important things to know about
  savings accounts for kids.
• Is my child old enough?
• Kids savings accounts typically give parents
  joint ownership. That means Mom or Dad can manage
  the finances until the children are ready to do
  so on their own. Because of that setup, your
  child probably wont have to meet an age
  requirement to open an account.

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• That said, a simple piggy bank will probably
  suffice for most children younger than 5. But
  once that money starts accumulating, youll want
  to give it the opportunity to grow.
• Which kids savings accounts are best?
• Before you open an account, take some time to
  find the best bank, credit union or online-only
  bank for you and your child. Keep an eye out for
  the following
• No minimum balance requirement or monthly
  maintenance fees Children should see saving as a
  good thing and not have fees diminish what they
  put into their accounts.
• A good interest rate At most national banks,
  savings rates hover around 0. Credit unions and
  online-only banks typically offer better rates,
  closer to 1.
• How do I open a kids savings account?
• Opening a savings account for your child isnt
  much different from getting a new account for
  yourself.

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• Once youve found a good bank or credit union
  option, schedule an appointment to visit a branch
  office. Once the day arrives, double-check that
  you have your childs Social Security card.
  (Youll need the same information if youre
  opening an account at an online-only bank.)
  Children should also bring their piggy banks and
  school identification card, if they have one.
• Encourage your child to put money in the account
  for the first time that day, and see if the
  financial institution offers candy or other
  freebies to reinforce the positive experience.
• Whats the next step?
• After putting money into your childs savings
  account, start teaching your son or daughter how
  to perform basic banking tasks.

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