Get the most out of your kid’s bank account
A bank account isn’t just about saving and spending - it’s about learning money management skills, too.
Help your child learn about the banking activities associated with their account:
- Pay their pocket money (or a portion of it) directly into their account
- Let them have access to the relevant banking app – even if it’s on your phone
- Explain the difference between transactional bank accounts, that are used for day-to-day banking and earn little or no interest, and savings accounts that earn interest. If your child saves a certain amount, consider opening a savings account linked to their bank account, which most banks offer
- Discuss a savings strategy with them – how much goes into a savings account, how often and what’s it for. Set savings goals and consider matching the amount that they save with a contribution of your own
- Teach them about interest, and how it pays to save
- Let them use their bank card to pay for things and teach them how to keep track of what they’ve spent
- Discuss whether they would like to donate a portion of their savings to charity
- As they get older, give them increased responsibility for handling their money when you feel it’s age appropriate.
This is an exciting adventure into the financially savvy future for your kids. Enjoy the journey and make every step a learning opportunity.
Note: This information is for reference purposes only. Contact individual banks for more information.
Article posted 13 February 2018
Updated on 5 February 2020
Updated on 16 February 2021