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How To Open A Child's Savings Account

By Edited Jan 26, 2014 0 0

It's that time, the time that each and every parent either fears or rejoices in. Your child is getting "ready" to leave the nest. But there is a problem, your child is only 14 years old and is currently holding their very first pay check. Being a responsible parent, instead of cashing it for your child and allowing them to blow it on who knows what, you decide to turn the situation into a learning experience for your child. You decide to help them open up their very first passbook savings account.

The first step is to decide on the bank you want your child to use. Are you happy with your bank and want to keep the family banking under one roof? If not, you may want to checkout some other banks and compare things such as: minimum amount to open an account, APY, standing account minimum, and any fees that might be associated with the account.

The next major decision you have is deciding on who will be the director of the account, also known as the parental signature. For savings accounts you have a lot less to worry about than if you were co-signing for a car loan or a credit card. So do not worry about being associated on the account, it is simply for legal purposes.

After you decide on the "right" bank for you and your child, next gather all the paperwork, which will be required: identification cards, social security number, address, phone numbers, and do not forget to bring their hard-earned check.

When you go to the bank you'll be assigned a passbook savings account representative who will be there to guide you and your child through this experience. During this process you may want to sit back and allow your child to be as involved as possible. Remember, this is for them. Let them feel in control and learn how to talk with these representatives. This will be a great skill for them to learn early on.
You and your child will fill out all the paper work and in no time your child with have their very first savings account. Double check that your child understands all the details about having the account - such as account minimums, fees, APY, etc…

And this is where it starts, first the passbook savings account, then the student loans, credit cards, auto loans, and mortgage loans. Before you know it, they'll be looking for checking account promotions for starting their first checking account. This will be the first of many experiences you and your child will spend in the bank.



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