In today’s society with all of the uncertainty of the economy, it is a wise decision to help your children set up kids savings accounts. You will be able to teach your child the importance of money, how to save, and how interest can be earned on the money in the bank.

The following article will share some of the accounts you can get and how they work in the best way for kids saving accounts and teaching your child to learn the value of money.

When your child is around three years old, you can start by having a home piggy bank where every week you take your child and help him count out the change to put inside the bank. In this way, your child will start to learn the basics of counting and saving. If you tell your child that when the bank is full, he can use half the money for a toy and the other half will be put away in a savings account for him for when he gets older.

When he gets older, you can explain to him that if he keeps his money in his savings account, he will earn “free money”. This meaning that he earns interest on the money he keeps in there. You will want to look for kids savings accounts that yield high interest rates and have low monthly fees. If you are in Canada, one of the best accounts you can set up is called the ” ING DIRECT Children’s Savings Account (CSA). While this account is shared with the parent, the child is given their own card and access code and can transfer, deposit and withdraw as you allow them to so they will learn the value of saving money and how money in a bank can work to help with their future. And as always, this type of account provides high interest rates, no fees, and no minimum balance.

In the U.S.A. One of the most popular kids savings accounts available is through American First Credit Union. If your child is under 12 years old, you can help him open his own Safari Savings Club account with as little as $5 down. He will start earning interest right away and there is no monthly service charges. From age 13-17, your child’s account will automatically turn into a Start Smart account.

You children can have fun watching their kids savings accounts grow no matter what country they live in. With the world revolving around the give and take of money, it is a necessary part of life to get your child learning the value of both saving money and spending it wisely. Children like to feel like they have some control over their lives. If you let them have their own passbook so they can keep track of their deposits or any money they do take out, they will feel more in charge and want to do their best at keeping things growing in the bank.

Author Bio: For some additional ways to help teach kids about money visit Kids Savings Accounts 101 where we explain how to encourage your kids to save money, make money, and understand money with savings accounts for kids!

Category: Finances
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