When to open that first kid’s bank account
More than two thirds of parents are fearful of passing on bad money habits to their kids, according to recent research. “Kids learn so much just be absorbing – they’ll watch Mum and Dad talking about money, arguing about money, having a negative attitude about money,” said Greg Smith author and founder of Kids Money one way to make money a positive thing for children to embrace learning about is with their own account.
All banks have some attractive looking kid’s accounts, and there are some good online savings accounts as well. “Walking into a bank branch is a good way to start with kids,” said Smith “Later they can understand and relate to internet accounts, but a branch is a good way to start.
The first bank account you choose for kid needs to be simple, with no fees and good interest rate. Some of these current offerings with big promo rates get complicated and if you miss making a deposit one month you don’t get very much interest – all that can confuse kids.
Children are very visual – you need to be able to show them a print out of the account balance and show them the interest that is being paid – that is part of the reward for saving.”
Source: Courier Mail