If you’re a parent, it’ll be your responsibility to teach your children about budgeting, saving, and other financial concepts. A youth account is a combined savings account in the child’s and guardian’s name. Youth accounts typically demand a considerably lesser deposit to open, have higher interest rates, and have fewer fees.
Youth accounts provide a safe location for your child’s money while also earning interest. Opening a youth account has numerous advantages and will teach your child how to save and spend money properly before they leave home.
Check out these advantages of opening an account for your children:
1. Teaches Goal Setting
A savings account encourages children to set a goal and strive to accomplish it, no matter how big or small. Keeping money in a savings account to buy what they desire is a terrific way to practice goal setting and achievement. Goal setting teaches children about hard effort and delayed gratification.
Setting and attaining objectives is a valuable ability in all facets of life that will continue to pay dividends in the future. Goal-setting serves as an encouragement to continue saving.
2. Teaches the Importance of Investing
A basic savings account also teaches kids how to invest wisely and consistently to grow their money. Children can see their savings grow and gain a sense of pride and accomplishment as they save money and learn to invest wisely. Furthermore, having a savings account demonstrates how small amounts can add up when saving and spending.
3. Teaches Accountability
A savings account that directly represents a child’s contributions, savings, and withdrawals will aid in teaching responsibility for actions. Children will learn that they will only accomplish their goals if they keep track of their money appropriately and contribute to their savings. They also understand the distinction between wanting and needing something.
4. Instill Compassion and Perspective
A youth account can assist children in comprehending how money resources are related to what others have and don’t have. They can begin to create a larger picture of life and how some people are more fortunate than others due to this. They also become more realistic about their family life and why certain actions are permissible.
5. Assists in Developing Financial Literacy
Because not everyone grows up in a family where saving is taught, teens would likely learn much about money management when they have their own money in their accounts. Saving for a specific financial goal teaches them the fundamentals of income and expenses – that things have a price, and your financial resources must meet that price.
Saving for a specific financial aim teaches kids about expenses, value, and income. Assume a youngster starts saving for something but quickly realizes how much labor and time it will take to earn and save enough money to get what they desire. This knowledge may encourage kids to think critically about how they spend their money and if it is worthwhile.
At Great Southern Bank, we offer intuitive tools to help you save better, and we’ve prioritized our clients for over 75 years. So, if you’re interested in teaching your kids to manage their money, save with our youth accounts today!
Open an Account for Your Child Today!
There is no right moment for children to open an account, but given the unpredictable nature of life, having a youth account would guarantee your child’s financial future. However, the most persuasive case for a youth savings account is to consider the absence of the benefits outlined above.
Youth accounts provide various learning opportunities and help young people build key skills they will need for the rest of their lives. Remember that these lessons are unlikely to be taught to children in school or elsewhere. Be their guide. Learn more about opening a savings account for kids and be an influence on becoming financially literate.