The famous piggy bank or money under the mattress have been saving methods and great ones too, but it's time for some changes.
There's never a better time to open a savings account for your child as now! Don't set it aside, do it as soon as possible and teach them about the importance of working with money.
This could help your child immensely by earning that sense of responsibility and being like mommy or daddy with their own plastic 'swipey thing'. It's also way safer than a Velcro wallet full of loose change and a bundle of small notes.
Teaching your child to work with their money by having a savings account
- Don't be afraid to be completely honest about your own money situation and how you do payments and budgeting every month.
- Make 'window shopping' a part of your grocery or shopping trips so that they understand that sometimes we can only look but not touch. This will also encourage saving up for that special something they can buy for themselves.
- Make sure to teach your children the difference between necessities and luxury.
- If your child borrow's money from you, let them know how it works when you borrow money as an adult from the bank. Teach them about interest and the importance of paying back what you borrowed.
- Let them go with you to the bank when they have money to deposit or teach them how online banking works, this way they will be able to be independent when they have to do it alone one day and they will feel in control of their financial situation.
There are so many perks to opening a savings account for your child like no extra hidden costs, free withdraws and an option to save for their education. Be sure to do your research on all your nearest banks and get the best option that will benefit your child the best, plus, some banks offer you a variety of perks like earning flyer miles or reward points that could be of benefit to the whole family.
If you are South African, here is more information on how to open an account with our banks and all the perks:
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