There are differing opinions when it comes to kids and bank accounts. Some parents choose to get their child a savings account from a very young age—putting away gift and other money in the account until the child is old enough o start managing it on his or her own, while others maintain that a child should be of an age to take responsibility for the bank account before getting one. Is there a right way and/or wrong way to introduce our kids to the world of banking, saving, and managing money?
I am of the opinion that savings accounts are a good thing—even for rather young children. But, with teenagers, I’m now wrestling with whether or not they are ready for checking accounts and/or credit cards. I definitely think that by the time a child is five or six—beginning to learn to read and understand simple numbers (adding, money, etc.) that having a bank account is a good thing.
Some families encourage children to save a portion of their allowance, while others focus on saving gift money. One good thing about getting your child set up with a bank account relatively early is that when relatives and friends send checks made out to the child, it makes it easier to cash or deposit those if he has his own account. While concepts like “interest” might take a while for a child to grasp, the idea of putting money away to save is a good one to get started on early.
I would love to hear how you have managed bank accounts, savings, and beginning money management conversations within you own family. How old do you think is a reasonable age to get your child started with a bank account? And, what sort of expectations do you have for whether or not your child saves allowance, gifts, or other income?
See Also: To Give or Not Give an Allowance and Would You Give Your Teenager a Credit Card?