The function of a savings account is to provide for a rainy day. Additionally, the benefits of a savings account with Achieva include things like accrued interest, secure safekeeping, and zero fees. As important as it is for an adult to have a savings account, how often do we think of it for a minor? Believe it or not, there are very meaningful reasons to open a savings account for your child.
Teaches responsibility
Communicating openly with your child about their savings account will teach them responsibility. They will learn how banking and savings work together and they will also feel pride in watching their account develop. Furthermore, opening a savings account for your child, and involving them in the steps, will teach them how to do it on their own as an adult.
If your child receives an allowance, it’s the perfect practice to teach them to store a little away for future needs. Talk with them about the benefits of saving and why it’s a good thing to do. Habitual acts of depositing and saving will enforce lessons that will last your child a lifetime.
Builds their account the easy way
The biggest gain when you open a savings account for your child is the ability to earn interest. Savings accounts have good rates for growing and with continued saving, will add up quickly. Before you know it, you and your child will have an account balance higher than the one that was started with. It’s the easiest way to get a satisfactory return while building their account.
As a matter of fact, all of our savings accounts have no monthly service fee. They also have a minimum balance requirement of only one dollar. You and your child can earn interest and watch your savings grow using our Kids Make Cents program.
Strengthens their confidence
Feeling responsible and learning how to manage their money will strengthen your child’s confidence. Letting them take charge of their account transactions is good practice for the future. Additionally, they will take the skills they learned from the process and apply them to other areas of their life. They will know that they can control their finances and that their deposits are securely kept within their account. Strengthening your child’s financial confidence will help them make smart decisions as adults. They will learn the value of the dollar and how to responsibly care for it.
We’re here to help you open a savings account for your child
We’ve gone over three key reasons why you should open a savings account for your child. With factors such as teaching responsibility, growing interest, and strengthening confidence, your child has many benefits to having their very own. If you have any questions about the process, our branches are ready to help. Stop by a local Achieva branch today for a consultation.
