How To Open Bank Accounts For Kids
It is important to learn how to open bank accounts for kids so they'll have money when they need it most. If you are a parent or have a little niece or nephew, you know that kids would want their own bank account because it would make them feel like a grown up.
- Check out different banks and ask if they offer bank accounts for kids. There are many banks to choose from that are willing to let kids have their own bank account. If you do not allow your kids to have bank accounts, they will not know the value of money.
- Have the child gather all the money they have to deposit into their new account. If they have been saving money, they are off to a good start. Kids who were taught the value of money are better savers.
- After you and your kid determine what bank would be a better fit, go to the bank of your choice. Going to your local bank would be the best option but sometimes there are other bank companies that offer a better deal. When you and your kid determine which bank offers the best deal, head on over there to open the account.
- After determining which account to open, have your kid talk to the bank associate. Some banks have more than one bank account for kids to choose from so it is best to get all of the information on the different kinds of accounts that are out there.
- Open a low or no-monthly fee account for your kid. Kids that are at least eighteen years old or or under 21 are able to open a bank account up no monthly penalties. However, there are banks who do charge a low monthly fee. If you want your kid to save as much money as they possibly can, open a free bank account.
- Have your kid sign his/her name and let the associate explain the bank account in detail. Your kid would appreciate if you let him/her sign his/her own name and have the bank associate explain what is included in the account. But as your kid's parent, be there to guide your kid, too.
- Use a binder to store future bank statements. Every time the bank statements come in the mail, let your kid open it and explain what each of the words mean. Giving them a financial education is a good way to get started on investing and saving money.
- Do a regular monthly deposit into your child's account. Whenever your kid receives money, encourage your kid to deposit it into his/her bank account. If your kid keeps doing that, he/she will be happy about how much money he/she has accumulated down the road.