How to talk to kids about their first savings account
Why it matters
A savings account can be a powerful tool for helping your child develop a lifelong habit of saving.
When to start
Your child is ready to learn about bank accounts as soon as they’ve saved some money and can do basic math.
Discuss why people save
Help your child understand that people save for big things they need and fun things they want.
Make it personal
Ask your child what they’d like to save for and why. Have them think about how much they’ll need to set aside.
Explain the basics
Talk about how a savings account keeps their money safe. Also that banks pay you bonus money, or interest, when you keep money in the account.
Pick an account
Open an account together
Involve your child in setting up the account — either online or by going to a bank branch.
Make a savings plan
Encourage your child to save at least 10% of any money they earn or get as gifts. As an incentive, you could match some of what they save.
Try to limit withdrawals
Advise your child to stick to their goals and save their money for special uses. As the adult on the account, you may be able to cap withdrawals.
Track the progress
Check the balance regularly
with your child so they can
see their money grow.
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