How to talk to your kids about their first savings account

A savings account can be a powerful tool for helping your child develop a lifelong habit of saving.

Why it matters

Your child is ready to learn about bank accounts as soon as they’ve saved some money and can do basic math.

When to start

Help your child understand that people save for big things they need and fun things they want.

Discuss why people save

Ask your child what they’d like to save for and why. Have them think about how much they’ll need to set aside.

Make it personal

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.

Explain the basics

Remember you’ll need to be a joint owner.

Consider an account designed specifically for kids.

Look for no fees, no minimum balance and a good interest rate.

Pick an account

Involve your child in setting up the account — either online or by going to a bank branch.

Open an account together

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.  

Make a savings plan

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. 

Try to limit withdrawals

Check the balance regularly with your child so they can see their money grow.

Track the progress

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