From debit cards to specialty accounts, our youth has access to more financial products than ever before. We wanted to dedicate some time to reviewing why it’s a good idea to open a savings account for your child, even at a young age.
Teach the basics of saving
One of the most important lessons you can teach your child is the value of saving money. A savings account is a great tool to help your kid understand this concept. By depositing money into a savings account on a regular basis and watching it grow, your child will learn the importance of setting money aside for the future.
Teach kids about money management
A primary benefit of opening a savings account for your child is that it helps them learn about money management in a hands-on way. When your child has their own account and they can control their spending, it’s easy to learn the importance of tracking spending and setting money goals. They’ll also learn how to manage an account at a financial institution.
Curio, Jovia’s exclusive app that pairs with a Jovia Youth Account, empowers kids to establish smart saving and spending habits with a reward system - earn rewards and money for completing chores or reaching their savings goal. Learn more about Curio!
Help kids save for a short-term financial goal
Turn the lesson of smart savings into a lifelong habit by having your child use their account to practice saving up for a short-term goal. First, talk to your child about their financial wish list, and help them choose a realistic goal. Next, help them create a savings plan while using their account, which will help them reach their goal. Your kid can now set aside money they’ve earned from an allowance or part-time job, or that’s been gifted to them, until they have enough money saved in their account to fund their purchase.
Prepare for the future
Starting a savings account and learning from a young age can prepare your child for unexpected expenses in the future. As they grow, their needs and expenses will grow with them. By preparing them now, you’ll be setting your child up for financial success in the future. For example, your child may need extra cash to pay for a broken phone, or, when they’re a bit older, for a car repair. Having money set aside for emergencies will teach them to be prepared for any financial reality.
Build responsibility and independence with a Youth Savings Account
Having a savings account can help your child build a sense of responsibility and independence. By managing their own money and making decisions about how to save and spend it, they’ll learn valuable life skills that will serve them well in adulthood. Listen to Jo from Jovia explain why youth savings accounts are great for you and your kids!
Opening a savings account for your child is an excellent way to teach them important money habits and to prepare them for a financially successful future. Learn more about Jovia’s Youth Account.