It is important to help children develop good financial habits from an early age. One of the best first steps is to open a savings account for your child.
When to open your child’s account? The sooner the better: Research shows that kids start to learn financial habits as young as 7!
Teach children to be smart savers and spenders
Your child’s savings account will grow with them throughout their life and serve as a valuable tool for learning the basics of saving and spending as they grow older.
In the early years, they can use their savings account to save money in the form of birthday gifts and allowances. Eventually, they can use the account to deposit the income from their first jobs.
Another way to instill financial literacy at an early age is to teach your children the “save, spend, share” method. When receiving money, children set aside a certain amount to “share” or donate to charity. The rest can be split between their savings account and pocket money.
Involve children in the process by asking them to choose where they want to donate money and helping them weigh the pros and cons of spending on small purchases versus saving for bigger ones.
Children’s savings accounts
Which savings account is the right option for younger savers? In general, it’s best to find an account that doesn’t have any fees or balance requirements.
At WaterStone Bank, kids 14 and under can join the Blue’s Jr. Bankers Club * and master the art of saving while having fun. With no minimum balance or monthly fees, and only $ 25 to open an account, this is a great option for kids and up, for every account opened WaterStone Bank donates to Children’s Wisconsin.
The Blue’s Jr. Bankers Club offers a mobile app where kids can track their account balances, set savings goals and learn about the concept of digital banking. The app also offers engaging games, activities and videos that keep kids having fun while learning the basics of saving and spending.
Learn more about the Blue’s Jr. Bankers Club or visit a branch near you to open an account for your child.
* For children 14 and under only. The annual percentage return (APY) in effect on 10/14/2021 is 0.01%. At our discretion, we may change the interest rate on your account at any time. The minimum balance to open an account is $ 25.00. Limit of one per customer and cannot be combined with other offers. No minimum balance required to earn the APY disclosed. Fees can reduce income. The donation made by WaterStone Bank SSB (WSB) will be made to Children’s Wisconsin in the amount of $ 10.00, the special donation will be available for the whole of 2021. For tax reporting purposes, a Form 1099 can be issued to the end of the year. See account disclosure for more information. Contact your banker for more details.