Considering opening a bank account for your child? Here are the options and the perks from four leading banks.
Opening a bank account for your child is a brilliant way to get them thinking about the realities of managing their money. It encourages them to save and teaches them about interest rates and transactions. And they are never too young to start.
We looked at the children’s bank account offerings from four of South Africa’s five leading banks (Capitec does not offer an account targeted at children), to help you decide which banking bundle is best for your child.
A bank account isn’t just about saving and spending - it’s about learning money management skills, too. Help your child to 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.
Discuss a savings strategy with them – how much goes into that bank 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.
Allow them to 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. Most of the bank accounts are for children up to 18, so there’s a large margin of competence among account holders.
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.