Top 4 Benefits of Opening a Checking Account for Kids
As a parent, teaching your kids about the value of money and the importance of saving is one of the most important life lessons you can instill in them. One of the most effective ways to teach them about money is to give them a real-life opportunity to manage their own funds. Opening a checking account for kids not only teaches them money management but also provides them with a solid understanding of financial literacy. Many financial institutions will allow a child 13 and older to open a checking account in their name with a parent or guardian on the account.
Ready to get started? CCCU shares the top four benefits of opening a checking account for kids:
1. Give them a head start on financial responsibility
Letting your kids open their checking account will teach them how to deposit, transfer and monitor their money, which makes them capable of understanding the basics of handling money. Plus, it will provide them with a healthy and safe environment to learn and ask money-related questions.
2. Teach them the importance of savings
Opening your kid’s checking account not only helps them grasp the idea of saving but also promotes healthy money habits that will surely benefit them when they become adults. They will understand that they don’t have to spend their money simply because they have it.
3. Help them achieve their financial goals
One way to teach the value of having a financial goal is to get your kid to do a countdown for their birthday. You can start by simply asking what they want to get for their birthday and discussing how they can save up for their purchase. This way, you are teaching them the process of planning and saving in an exciting way.
4. Show them how banking works
By the time your kid turns 18 or starts working part-time, they will be more confident in handling their finances and be able to start managing their own bills or college expenses. From saving to creating their budget, they can make better financial choices for their future.
Open your kid’s checking account today!
Opening a checking account for your kid will help them develop the skills that are necessary to achieve financial success later in life. At CCCU, we partner with Banzai to bring you clear and in-depth lessons that help you and your kids dive into different financial topics that are fun and easy to understand. There are even games with real-world choices! Be sure to follow us on Facebook and Instagram for more financial tips!