You’re never too young to learn about being financially responsible. It can start off as simple as the contents of a child’s piggy bank. Whether it’s at a bank or credit union, the importance of setting money aside is crucial for a brighter future for the up-and-coming generation of young people. Years ago when my young nephew spent summers with me, I opened an account for him at the bank. When he would do jobs around the house or for other people he would be compensated for it, a portion of his money was put in the bank. It stayed there for many years, too. Now he is 30 years old and married with an account of his own. He has learned to appreciate the value of saving and budgeting his financial resources wisely. Opening an account for children is important and here are some reasons why.
It will teach the importance of putting money away – Children sometimes have the idea that their parents can provide for everything their hearts’ desire. Little do they know that many times their parents are fortunate to meet the mortgage payment and put food on the table. When children have their own account they won’t be as fast to withdraw, especially if it lowers their account balance.
It will help them to be more disciplined in their spending habits – If they earn any extra money via allowance or by having a part-time job, they won’t be as anxious to spend it especially if they have to buy something they want on their own without help from their parents.
It will help them to have spending change when they go on vacation – Nothing spells independence more for a young person than having their own stash of cash to spend while traveling. Those things that you couldn’t get before because it wasn’t in the family budget can now be more easily purchased because they have saved specifically for this time.
It allows them to save up for something that they really want. – Money doesn’t grow on trees. And because of that it is important for them to be willing to save for the things that they really want. It will give them the satisfaction of knowing that they gave up some things to get those things that they just had to have.
It will teach them to hopefully stay out of debt – By being responsible with their money they will learn to budget properly as they go into adulthood. Old habits are hard to break. The earlier they can learn about budgeting their money, the better off they are more likely to be financially.
It will allow them to freely share with others that are in need or to a charity- They will learn not to be stingy when a crisis happens. It could be a family crisis or a local catastrophic event that has taken place. They might be more willing to sacrifice and help others who might have an immediate need. Knowing that they helped someone will instill in them a sense of pride.
You can contact your local banking institution to find out what the requirements are for opening an account for a young person. It’s a rather seamless process that will reward handsomely if savings is done on a consistent basis.
Personal experience and suggestions