Guest Post: Does your Baby Have a Bank account?

As
a greater number of people recognise the importance of good money management,
particularly in times of economic hardship, opening a bank account for young
children is becoming increasingly popular. Whether it’s used as a safe place for
pocket money or to begin building savings for the future, a baby bank account may be just what is
needed to ensure that your child appreciates the value of carefully managed
funds and has something to help towards important purchases later on in life.

So,
just what are the benefits of opening a bank account for younger
children?

Financial
independence

As
your young begin to get a little older, it is important that they start to learn
the importance of looking after themselves financially. A good grounding in
sensible spending and saving will prove invaluable in the future and root a
number of important qualities in the way they think about money.

Baby
bank accounts give children the opportunity to learn how to manage their money
by developing in complexity as they do. By slowly introducing vital elements,
such as cash cards, budgeting skills and statement checking, they develop a
greater understanding of the correct way to look after their
savings.

Nest
egg

Baby
bank accounts can also be used to ensure that there is always a little money
tucked away for their future. Whether it is to be spent on higher education,
their first vehicle, a deposit on a property or as a present on their
18th birthday, a future fund is the best way to ensure money remains
safe and secure.

There
is usually a great degree of control allowed over how such accounts are set up
and though age restrictions may apply they can be opened solely in the name of
the child. If parents want a little more input, accounts that give them access
are available too.

Rewards

Baby
bank accounts also boast a number of benefits that most normal accounts wouldn’t
receive. Some banks offer benefits such as free educational gifts for your
child, while others may donate to charity. This gives you the opportunity to
reward your child for sensible saving behaviour at a young age, really imbedding
the importance of careful spending in their character.

Though
you may think of your child as too young to have a bank account, the truth is
that children are never too young to begin learning how to be responsible. Many
relish the opportunity to take on such responsibilities and quickly come to
understand the importance of the decisions they make with their money. With a
greater number of financial commitments being thrust upon younger generations,
it is also vital that they have something to fall back on if required.

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