It’s important to help kids establish good financial habits from a young age. One of the best first steps is opening a savings account for your child.
When should you open your child’s account? Sooner is probably better—research shows that kids establish money habits by the time they’re just 7 years old!
Teaching kids to be savvy savers and spenders
Your child’s savings account will grow with them throughout their life and serve as a valuable tool for learning the basics of saving and spending as they grow.
In the earlier years, they can use their savings account to set aside money from birthday gifts and allowance. Eventually, they can use the account to deposit earnings from their first jobs.
Another way to instill financial literacy from a young age is by teaching your children the “save, spend, share” method. When they receive money, kids set aside a certain amount to “share” or donate to a charitable cause. The rest can be split between their savings account and spending money.
Involve kids in the process by asking them to choose where they want to donate money and helping them weigh the pros and cons of spending on small purchases versus saving up for larger ones.
Savings accounts just for kids
Which savings account is the right option for the youngest savers? In general, it’s best to find an account that doesn’t come with fees or balance requirements.
At WaterStone Bank, kids ages 14 and under can join the Blue’s Jr. Bankers Club* and master the art of saving while having fun. With no minimum balance or monthly fees, and only $25 to open an account, this is a great option for children—plus, for every account opened, WaterStone Bank makes a donation to Children’s Wisconsin.
The Blue’s Jr. Bankers Club features a mobile app where kids can track their account balances, set savings goals and get comfortable with the concept of digital banking. The app also features engaging games, activities and videos that keep kids having fun while learning the basics of saving and spending.
Learn more about the Blue’s Jr. Bankers Club or visit a branch near you to open an account for your child.
*For children 14 & under only. The Annual Percentage Yield (APY) effective as of 10/14/2021 is .01%. At our discretion, we may change the interest rate on your account at any time. Minimum balance to open account is $25.00. Limit one per customer and is not valid with other offers. No minimum balance required to earn disclosed APY. Fees may reduce earnings. Donation made by WaterStone Bank SSB (WSB) will be made to Children’s Wisconsin for the amount of $10.00, the donation special will be available for the entire year of 2021. For tax reporting purposes, a 1099 form may be issued at yearend. See the Account Disclosure for more information. Contact your banker for more details.