In order for children to become adults that are financially literate, they typically need to be taught how to responsibly manage their money as they grow up. One of the most effective ways to teach a child about finances and stock away money for their future at the same time is to open a bank account for them. Many banks nowadays offer accounts just for minors, and there are several ways you can learn more about them.
Instructions
1. Read books about saving for children and children's bank accounts. Check them out from your local library or see if a bookstore in your area carries titles about investing and finances for kids. These resources will not only help you learn key banking and financial terms, but also will explain the advantages and disadvantages to the most common bank accounts available for children.
2. Browse Internet resources about saving, such as Banking Questions, The Motley Fool and Personal Dividends. Such websites often have forums or message boards where you can chat with other parents, grandparents and financial advisers if you have any questions.
3. Contact your local credit union, or the prospective banks you have in mind for opening your child's bank account. Ask any questions and inquire about the financial services they offer for children. In addition to bank accounts, some financial institutions offer programs just for minors that include free workbooks, presentations or learning activities about money management.
4. Get your kids involved, if they are old enough to understand the concept of managing money. Allow them to read the materials you browse, and have conversations about the benefits of saving, how it will help them in the future and why it's important to learn how to be financially responsible early on in life.
Even preschoolers can be taught about bank accounts. Several companies and stores offer products, such banking play sets and faux ATMs, that can help young children learn to manage money through pretend play.
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