Teaching Kids about Money – Part 3
by Michelle Lambright Black
This week we are exploring simple, effective ways to teach children about money. If you find any of these blogs helpful, please be sure to forward a link to your friends and family.
Lesson #3: Open a Bank Account in Your Child’s Name
As we continue discussing the theme of teaching children the value of money, and how to handle that money properly, we believe it is very important to cover the area of opening a bank account for your child. Opening a bank account in your child’s name at an early age can go a long way in teaching him or her how to properly manage their money in the real world. A bank account is especially helpful if you have teenage children; however, even children as young as 6 or 7 could benefit from having a bank account. It can be a wonderful teaching tool for your child.
If you do open a bank account for your child, it is important to allow them to make regular deposits. You can also set a limit on how much your child is allowed to withdraw from the account. This is an important rule to remember since it will help to teach your child that just because money is in the bank does not mean that it all should be withdrawn or spent. Also, if you are using the jar system discussed in yesterday’s blog, Teaching Kids about Money – Part 2, a bank account can be used in conjunction with this teaching technique. You would simply have your child take the funds from the “savings jar” each week and deposit them into their bank account.
Be sure to visit our website again tomorrow for more information regarding how you can teach your child to be financially responsible at a young age. Also, please remember that if you have any credit issues you need assistance with, feel free to contact our caring staff at 704-499-9696. We look forward to hearing from you soon!