Why Your Child Needs a Savings Account

Today is Teach Children to Save Day. What are you doing to ensure your children become responsible savers?

One way to teach responsible money management is to help your child move from a piggy bank to an actual savings account. Having a savings account benefits children in numerous ways, including these outlined by the American Bankers Association Education Foundation:

Kids who save are more likely to go to college. Research conducted by Washington University’s Center for Social Development found that children who have a savings account in their name are seven times more likely to attend college than similar youth without an account.

Teaching kids to save teaches self control. Choosing to save instead of spend is an exercise in self control. The famous Stanford Marshmallow Experiment showed that kids with self control are psychologically better adjusted, more dependable and do better in school.

— Children savers have a better outlook on life. Children with a savings account have lower stress and a greater sense of hope for the future, according to the SEED Initiative.

Savers are more financially literate. Students with a bank account tend to be more financially literate than those without an account, according to a national financial education survey compiled by the Jump$tart Coalition for Personal Financial Literacy.

Children’s savings accounts are free and fun. Most banks offer no-fee, no-minimum balance “custodial accounts” for children. Many banks, including Bank of American Fork, provide incentives for account openings and deposits, such as an increased interest rate or matching funds. 

Ensure your child is a smart saver by helping them open a savings account today.

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