Parents today recall when they were young and the distress they felt when first cut off from their own parents and responsible for their own expenses. They do not wish their children to experience the same angst. So to help them, they open savings for child and instruct them on the importance of saving.
The decision about how early guardians should open accounts for children lies with the guardians. If they provide the children with an allowance, they may consider opening an account at ages five or six. At ages twelve and thirteen, children may begin performing chores around the neighborhood, such as babysitting or mowing the lawn, and need a place to hold their compensation. Only the caregivers can decide when their children are ready to learn about savings accounts.
To open a savings account, a guardian will need to meet with a bank representative, such as at Bank of America or Wells Fargo, and sign papers stating they will be held responsible for funds the children may overdraw. Needless to say, the bank is not responsible for instilling a financial grounding in the youngsters.
At the meeting, the parents will also need to make a deposit in the new account. Bank of America asks for $100 as the opening deposit. If the children in question do not already have the required amount, from a job or an allowance, the parents must pay the deposit.
Opening an account will do no good if the guardians neglect to teach the adolescents the importance in saving. They could begin by showing their dependents phone and cable bills, explaining how they pay the bills with their income from work. They can teach the obligation to save for emergencies and taxes to teenagers working part time jobs, emphasizing on the wisdom in saving portions of their income when possible.
Do not let children grow up and learn financial responsibility the hard way. Teach them the importance in budgeting, allocating their income to both pay bills and save. After all, the more money in the savings accounts, the higher the interest payments. If guardians truly care about the emotional and physical security of their children, then they will open savings for child and provide them with a solid base to go out in the world and succeed.