Most banks make provision for savings accounts for little children, find the best savings accounts for kids. Starting with piggy banks at home, they soon have to “park” that money off where it would be in their best “interest” such as a savings account. Deciding on the Best Savings Accounts for Kids is easy. Simply compare which banks offer a free-of-fee account and which allow simple tools for saving such as an automatic transfer to your kids account. Be very careful of the big, “reputable” banks because having R500 in the banks savings account, in a few months there will be a zero balance because of the bank charges.
What is the Best Savings Account for your Child?
Investigate about other accounts that you can open on behalf of your child.There are some excellent accounts which can be gifted to your child on their birthday or Christmas. One of the Best Savings Accounts for Kids is a RAF account . It operates like a retirement annuity fund, but gives your child a head start. Once you child starts work, they can take over the payments. It is also very cheap and affordable to get a RAF for children, certainly less than the sweets, chocolates or toys that you buy every month.
What will a Savings Accounts for Kids teach them?.
Opening a bank account is a brilliant way to teach your child to manage their finances. Finances can never be taught too young. Some young children earn an income from part time jobs or get gifted cash for birthdays and want to invest their money to see it grow. It also teaches a child discipline to save their money instead of squandering it on instant gratification such as beautiful clothing or extravagant ice-cream.
Understand which Savings Accounts to Choose from
Be especially cautious about bank charges. Ask questions about the interest they pay, what are the minimum balances to open an account and if there are any fees or charges to operate this account. Enquire about withdrawal facilities, ensuring that you have a right to authorise the withdrawal, so that the child cannot withdraw money on their own. Choosing the correct bank or savings vehicle, will help your child to understand more about finances and money management, while seeing their account balance grow.
At what age did you open your first bank account? A child is never too young to be taught lessons in money management. There are many fun ways for your child to grow their bank balance. Not just washing your car, but using social media to become an influencer can earn your child a handsome sum of money as a side hustle. This money can be banked into your child’s savings account with a goal of perhaps buying a mobile phone or something that your child really wants, but that you don’t necessarily want to buy for them.
It’s important to show your child why they should open a bank account in their own name instead of just keeping the Rands and cents in a piggy bank.
- They understand what interest is as they see their money growing.
- They learn how to delay instant gratification in order to save for a bigger goal.
- They appreciate the value of money, by earning, saving and then spending it.
- They learn how to budget for an expected purchase. Budgeting is an important skill for them to learn at a young age.
» Explore: South African Banks
The Importance of starting Savings Account at a young age
As your child gets older they want to earn interest faster because they realise the importance of saving towards furthering their education at tertiary institutions. They are also ready to experiment with alternative methods of growing their money such as investing in stocks or even alt coins such as Bitcoin. You will have to guide them while they explore these options in a safe manner, so that they don’t get misguided and invest in scams or shady deals. Growing their money on their own, will bring them much joy and rewards when using it for a much needed holiday with friends.
Opening a bank account for a minor is not possible on their own. It requires the assistance of an adult. An account needs assistance to anyone under 18. Thus it acts as a safety factor for the child not to deplete all the money in there, as well as to learn how to be responsible with their account. A parent or any adult can help the child to open an account.
Choosing the right bank for your child’s savings account can set them up for financial success. Learn more about the top banks in our article on Which Bank is the Best in South Africa?.
Why banks want to offer an account for your child?
Most banks will not deny you to open an account for a child. In fact some banks have dedicated accounts for little children because they know that if they catch a child while they are young, they will have a client for life. It is in the best interest of the bank to make provision for such account. This creates loyalty. Enquire about the best accounts for children of different ages.
Some banks allow you to open accounts online. However, there are certain requirements that must be met:
- Your ID.
- Your child’s Birth Certificate or ID if old enough.
- Your proof of address for FICA purposes.
- A stipulated amount to be deposited into the account.
What is the perfect saving accounts for Kids?
Investigate about other accounts that you can open on behalf of your child. Your child can open account for their birthday or Christmas. One such account is a RAF account. It operates like a retirement annuity fund, but gives your child a head start. Once you child starts work, he can take over the payments. It is also very cheap and affordable to get a RAF for a children. The account is certainly less that the sweets, chocolates or toys that you buy every month.
What a Savings Account Teaches your Child
Opening a bank account is a brilliant way to teach your child to manage his finances. A child is never too young to be taught about finances. Some young children earn an income from part time jobs or cash form birthdays. They may want to invest their money to see it grow. It also teaches a child discipline to save his money instead of squandering it on instant gratification.
Be especially cautious about bank charges. Ask questions about the interest they pay. What are the minimum balances to open an account? If there are any fees or charges to operate this account? Enquire about withdrawal facilities, ensuring that you have a right to authorise the withdrawal. Your child cannot withdraw money on his/her own. Choosing the Best Savings Accounts for Kids ,correct bank or savings vehicle, will help your child to understand more about finances and money management.
» Learn: The Steps on How to Open a Bank Account
Opening an account for your child and the benefits
At what age did you open your first bank account? There are many fun ways for your child to grow his bank balance. Not just washing your car but using social media to become an influencer. As an influencer they can earn your child a handsome sum of money as a side hustle. Your child perhaps wants to buy a mobile phone or something that he really wants. You may not have the funds or don’t want to buy it for them. Your child can save towards there own goal.
What they will learn from having their own account
It’s important to show your child why they should open a bank account in their own name. No more Rands and cents in a piggy bank.
- They understand what interest is as they see their money growing.
- They learn how to delay instant gratification in order to save for a bigger goal.
- They appreciate the value of money, by earning, saving and then spending it.
- They learn how to budget for an expected purchase. Budgeting is an important skill for them to learn at a young age.
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Why start a Savings Account for your child?
As your child gets older they want to earn interest fast. They realise the importance of saving towards furthering their education at tertiary institutions. They are also ready to experiment with alternative methods of growing their money. Investing in stocks or even alt coins such as Bitcoin. Scams or shady deals will misguide their investments. You will have to guide them while they explore these options in a safe manner. Growing their money on their own, will bring them much joy. The rewards will come when using it for a much needed holiday with friends.
Opening a bank account for a minor is not possible. Only an adult can assist a minor. An account can not be opened under the age of 18. Thus it acts as a safety factor for the child not to deplete all the money in there, as well as to learn how to be responsible with his account. A parent or any adult can help the child to open an account.
Most banks will not deny you to open an account for a child. Banks have dedicated accounts for children because they know they will have a client for life. It is in the best interest of the bank to make provision for such account. This creates loyalty. Enquire about the best accounts for children of different ages.
Some banks allow you to open accounts online. However, there are certain requirements:
- Your ID.
- Your child’s Birth Certificate or ID if old enough.
- Your proof of address for FICA purposes.
- The account will have stipulated amount with in it.
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