Opening your child’s first savings account
As parents, we want our children to be ready for life and have the knowledge to guide them through it. A great first step in their financial education is to open a savings account. At Guardian Credit Union, we have our Soaring Savers Kids Club. Having a savings account is a great tool in teaching children to be financially savvy adults.
When is the right time to open your child’s first account? A great opportunity to open an account for your child is when friends or family give money as gifts. At Guardian, when you open an account for a child aged 12 and under, your child will receive a savings register and a piggy bank to help get them excited about saving.
With each age, there are different ways we can teach children about money and saving. With young children, you can start with very basic steps. When children are around 3 to 5-years-old, just having them count the number of coins they have (not denomination) is a fun beginning step. As they get older, they can start to count and learn about denominations. The 3 to 5-year-old age range is also a great age to get them in the habit of putting half their money into their account, emphasizing that they should be saving half of the money they get.
Each time a child makes a deposit into their Guardian account they get a token for Guardian’s Soaring Savers zig-zag prize machine. And when they stop in around their birthday, they get a bonus token for the prize machine. Another fun thing for children here at Guardian is bringing coins in and running them through the coin machine. In addition to being fun, this can help them learn how all those coins add up.
Opening a savings account for your child can offer other perks too. For example, at Guardian Credit Union, we offer things such as coloring contests and Santa visits, and the best popcorn in town (for adults too). Parents can find more tips on this blog for raising kids with a strong financial foundation and ensuring that they, as parents, have a good understanding of financial topics.