Why savings for kids might be a good idea
11 December 2018
Just as your kids first learn to ride a bicycle, it’s also important that they learn how to manage money. Training wheels stay on until they can master the basics of cycling, and money is no different – it’s a learned skill.
Helping your kids create healthy financial habits might start with some basic lessons in how to save money. Many savings accounts offer accrued interest, secure online access to money, and a sense of independence and ownership for your child. In fact, there are lots of reasons why savings for kids is a good idea, so let’s take a look.
It’s a reason to talk about money
It’s not an easy subject to talk about with anyone, but it’s an important subject for everyone. When it comes to opening children’s bank accounts, it’s an opportunity to start a conversation about money.
Savings for kids can teach them the value of money, what to do with it and why it’s important to put money away. A great place to start managing their money is with a piggy bank – many of us might have started there.
A piggy bank helps organise loose change from under the couch cushion or from earning money through small jobs, like household chores. It also sets a great example for youngsters in the family about the importance of saving – whether it’s for a new toy or video game – and becomes a lifelong habit. When your kids piggy bank is full, it’s time to cash the money in – maybe that involves buying an item and putting the rest into a savings account.
When your kids start becoming more independent, you can help them set up a savings account. It allows you to take the lessons in money management one step further.
Want to help your kids grow their savings? Our Kids Savings Account is a great way to start teaching your kids how to save and manage their money.
It’s the start of real-world responsibilities
Savings for kids can help equip them with positive habits around money. They may learn how banking and savings work together and hopefully they could start to be proud of their savings account as it grows.
Rewarding your children with pocket money for doing household chores can help educate them on the value of money. And these small savings contributions can help teach your kids how to manage money and earn it on their own.
Want to build up your kids money confidence? We’ve developed an online game with the Financial Basics Foundation called the Suncorp ESSI Money Challenge – check it out!
It grows their account balance
One of the best things about opening up a children’s saving account is the ability to earn interest. And with regular contributions, they can add up quickly.
Building up a kids savings account can also build your child’s confidence by letting them take charge of their account transactions. They might learn the value of a dollar and how to responsibly manage it. It can also give them spending options for future financial needs that arise, such as university fees or getting a headstart on saving for a gap year overseas after leaving high school.
Helps kids establish lifelong money habits
Kids might not be aware of the impact money can have on the different areas of everyday life. But unhealthy money habits can start early.
Good money management skills can get kids into the habit of saving money regulary and teach them an important skill they can bring into adulthood. With money in their hands, it may be easier for kids to manage their money later on and who knows… maybe one day they’ll thank you for it!
Read More on Learn About:
- Tips to improve your kid’s spending habits
- Suncorp ESSI Money Family Challenge
- Developing your child’s saving habits
Deposit Products are issued by Suncorp-Metway Ltd (“Suncorp Bank”) ABN 66 010 831 722 AFSL No 229882. Please read the Product Information Document for Personal Deposit Accounts before opening an account. Fees, charges, terms and conditions apply and are available on request.