When children see toys advertised on television, clothes in a store or candy on the shelf, they immediately want them. Of course they don’t understand that it takes money to buy these things. And if a parent says well honey, that costs a lot of money, children think that parents have an endless supply of money that simply appears magically out of their wallets. That is why it is important to teach children early about the value of money by looking into bank accounts for children.

Teaching children about money will help them make smart buying decisions, develop strong savings habits and show them that they cannot always get everything they want the minute they want it. If they get a sense of the importance of buying things that you need, instead of things you want.

To begin your child’s education into the world of finance, it is wise to explain that money can not simply give to them, but earned by them. Setting up a list of chores for children to do around the house and paying them when they are completed helps them understand about earned income.

Using a ceramic or toy bank will help children learn about the importance of saving money. If they want a toy or something that costs more than one or two weeks worth of allowance, show them how they can get it. They just need to put a portion of their allowance away each week until they’ve saved up enough to buy what they want.

Once your child has a handle on the idea of saving cash at home, it’s time to teach them about banking by opening a savings account. Many banks, both online and brick-and-mortar, offer savings accounts for kids. This gives them the chance to start an account without a significant minimum balance or fees that would wipe them out.

You should open the first account using both your name and the child’s name, which indicates a custodial account. You’ll need to bring along the required identification forms, social security numbers, address information and birth dates.

Discuss the importance of the bank book with your child and have them put it in a safe place. Don’t keep the bank book yourself. The point is to let your child learn, right? Many bank account representatives will take the time to go over all the steps with your child, such as the importance of accurately entering deposits and withdraws, as well as dates and explanations. It wouldn’t hurt to go over this information with your child again when you get home.

Most important, keep it simple. Your child is not starting a checking account and does not need to know all the details that are involved with maintaining this type of account, at least not yet. Your child will stay encouraged about saving money once the bank statements arrive and the child can see the bank account grow. This can also discourage unnecessary purchases, as he or she will want to accumulate more money. Children can learn about the importance of saving money and managing limited resources by opening their own savings account. All it takes is a little praise and encouragement from the parents to help build their kids financial future.

Author Bio: Find childrens savings accounts online. When your child is old enough, it’s time to open a banks free checking account for them too.

Category: Parenting
Keywords: savings accounts, bank accounts for kids