| Children need to start learning early about saving | | | | government and that if the bank is robbed, their money |
| money and one of the best ways for them to do that | | | | will still be safe. Instilling this type of confidence in the |
| is with a children' savings account. Savings accounts | | | | banking system at an early age will likely lead to |
| for children are a perfect way to teach children about | | | | children who are more willing to invest. |
| banking and to get them to understand the importance | | | | The next thing children need to learn is the difference |
| of saving money. | | | | between money that is invested and money that is |
| Lessons for Life | | | | liquid. Explain to them that they can remove money |
| A children's savings account starts by teaching kids | | | | from their savings account whenever they want, but if |
| the basics. They learn about making deposits and | | | | they have their money invested in bonds, they have to |
| withdrawals, interest, and how a bank works. | | | | wait for the bond to mature to get the best return. |
| Watching their account grow through regular deposits | | | | Also explain how compound interest works to grow |
| will teach them the importance of saving over the long | | | | your money more rapidly. This helps children |
| term. Basics such as balancing a bank book and | | | | understand the importance of letting their money grow. |
| figuring simple interest are things that will serve them | | | | With so many of today's college aged kids in debt, it is |
| well throughout their lives and hopefully give them the | | | | important to start teaching younger kids about banking |
| hunger to learn more. | | | | and personal finance as soon as possible to avoid this |
| Don't forget to teach your children about banking's | | | | situation. Children's savings accounts are a great |
| most important feature, security. Explain to them | | | | way to get kids involved and give them a concrete, |
| how their money is insured up to $250,000 by the | | | | real world lesson on the importance of money. |