Although it’s typically new parents who consider starting savings accounts in their children’s names, family friends and relatives of kids of all ages may be interested in starting or contributing toward this investment. And it helps to give these trusted loved ones an account number where they can distribute money – such as for birthdays and graduations. Other than simply having money set aside for a child’s future, the biggest benefit may be that children can grow up with a sense of how money works.
These savings accounts may have restrictions. With some banks, individuals need to be a minimum age to open an account in their names – in which case, you can open an account in your name for the minor. In other instances, parents can open accounts for their children, but only those 18 and up can open an account on their own. Much of the time, parents will find that opening an account for a minor is either free or doesn’t require a minimum initial deposit, especially when they have a preexisting relationship with the bank.
Savings accounts may be a good choice over other types of investments, although they may not have as high rates. That’s because they’re stable over time, until the youth becomes an adult and can take over their own money management. One of the down sides to savings accounts is that there’s a limit to how many withdrawals can occur each statement period; but since the child probably won’t be taking out money until a certain age, it’s not a detriment. Savings accounts can also easily be linked to your existing accounts. For example, a Discover Bank savings account can be tied to other checking or savings accounts for automatic monthly transactions and consolidated management.
Taking your child on a trip to the bank can be a fun learning experience where they learn the significance of putting money away for the future. They’ll see where their money is going and understand that other professionals are taking care of it until they’re older. Aside from visiting the bank, it’s also easy to show your child his or her balance online so he or she can track how savings accounts grow with time.
Regardless of the sum or the total years invested, savings accounts for children can help them become adults who understand the value of putting money aside and executing a strong sense of fiscal responsibility.
TM Murphy is a professional writer who lives in NYC. She currently specializes in fashion, beauty, marketing and finance articles. For easy-to-understand financial advice on opening a Discover Bank savings account, she often turns to http://bit.ly/1uXE6dL. TM Murphy has been writing full-time since 2006, when she graduated with a B.A. in English from Northeastern University.
Related Investing For Kids Articles
The post Savings Accounts for Kids appeared first on SmiLoans.
from WordPress http://bit.ly/1x9PPKH
via IFTTT
No comments:
Post a Comment