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5 steps to opening a savings account for your child

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Raising financially savvy kids
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Raising financially savvy kids © iStock

Raising financially savvy kids

Opening a savings account for your son or daughter is the easy part. Before -- and after -- you visit the bank you need to invest in their financial education.

Why?

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Talking to your kids about money is a great way to raise financially savvy children, according to the 2015 Parents, Kids & Money Survey by T. Rowe Price. Kids who discuss financial topics with their parents, according to the survey:

  • Say they are knowledgeable about managing money (46% vs. 14% for kids who don't talk money with Mom and Dad).
  • Say they are knowledgeable about investing (33% vs. 8%).

And a savings account is a tangible teaching tool.

"It's crucial for parents who open kids' bank accounts to keep them involved in the process," says Chester Goad, a graduate instructor at Tennessee Technological University in Cookeville and a former K-12 principal and teacher. Among the life lessons they'll learn: realizing the value of money, planning for future expenses and fulfilling long-term goals.

Follow these 5 strategies to help your child open a savings account and ensure the experience has a lasting impact.

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