As a parent, you desire your child to flourish and have a secure foothold in life. There is an easy effective way to achieve this. Finance is the most important aspect of life and teaching your child about handling money, is always a basic and essential lesson. Opening a savings account when young effectively enables them to be financially responsible. Custodial accounts, like UTMA or Uniform Transfers to Minor Act accounts and UGMA or Uniform Gifts to Minors Acts accounts, are easily the best way to learn about managing money. There is more about this, and some points might give you a proper overview about this.
OPT FOR BANKs PROMOTING FINANCIAL EDUCATION
The importance of a savings account for your child is now crystal-clear. Certain financial institutions impart valuable money habits to children thereby ensuring savings is entirely a fun process. You seek a banker’s help to scroll through the bank’s website to identify appropriate money tutorials for children. Substantial information is available on the Consumer Financial Protection Bureau website as it is a financial regulatory as also an educative agency. Some financial institutions that are appropriate are Capital One, Bank of America, Bethpage Federal Credit Union, Allianz Credit Union, Golden 1 Credit Union, USALLIANCE Federal Credit Union, , and Wells Fargo.
ALWAYS SAVE FOR YOUR KID’S COLLEGE EDUCATION
Most parents tend to hurry and save adequate money for their child’s education. It is estimated that the average cost a parent incurs is around $10,230 for a public institution but costs shoot up to about $35,830 for private institutions. There are several ways whereby you build up adequate savings for funding studies. You can choose between an Education Savings Account or ESA, a 529 account or UGMA/UTMA accounts. Irrespective of the financial objectives you have for your child, the ability to handle money is always fun. Every parent hopes to see the success of their children during their lifetime and become serious about money. Prior to ensuring their financial independence, the basic nuances of handling money and the importance of savings, have to be mastered by them. Allow them practical experience, of managing finances when growing up. This encourages them to blossom as responsible adults with ability to handle their finances systematically. Keeping them away from monetary discussions and not encouraging them to save early in life, ensures facing challenges later as adults. Consult a financial advisor on tips to teach your child.
ALWAYS OPEN A SAVINGS ACCOUNT
Many parents are unsure about opening a savings or checking account for children. Checking accounts ensures spending money, while you must teach your kid about saving money. Make sure your child starts working or becomes a teenager before allowing complete access to checking accounts. Opening a savings account for your child, keep your kid’s identification documents ready. Wells Fargo insists your child have a driver’s license or have an adult who has been their customer for at least two months, to sponsor them. Other documents are a birth certificate, school id, immunization record, and a Social Security card. Your child maybe tech-savvy and conversant with basic online banking, but should visit a physical bank-branch to learn proper banking etiquette by handing over babysitting money, store the receipts to keep track of growing deposits.