Helping your child set up their first bank account
A step-by-step guide to introducing your child to banking.
Getting a bank account for the first time is a big money moment. For early primary school kids, it’ll probably be the first time they have a formal way to save beyond that of a piggy bank. For parents, it means setting up their account and explaining what it does.
I’ve always thought of this process as a great opportunity to introduce early primary school-aged kids to banking. Although it’s unrealistic to expect them to set up their own bank account, there’s no reason why you can’t get them involved and teach them some valuable lessons from the get-go.
Step 1 – Introduce the concept of banking to your child
By the time your child is old enough to attend school, you can begin explaining what banks are and how they work. It can be a tricky
Step 2 – Discuss what they will use their bank account for
This is where you can explain to your child how they will use their bank account. Use your own examples to explain to them that you get paid for going to work and that money is paid into your own bank account, which you then use to pay for things like food and bills. Let them know that they’ll eventually get money, which they can put into their account, and over time this will accumulate with rewards for savings efforts.
Step 3 – Setting up an Account in-branch or online
Any children who are under 14-years-old will need a parent or adult to help them set up their account either online, or in person at a branch. Make sure you have your child’s birth certificate and a residential address handy. See if you can involve your children in the process to give them ownership over their account and a more holistic understanding of the banking experience.
Step 4 – Help them
There are plenty of ways to make saving
Step 5 – Give them
Ultimately you’re the gatekeeper to your child’s account, so it’s up to you to help them when it comes to saving. Make sure they’re regularly saving money and depositing it into their account. There may be points in time when they want to withdraw money, so use these as an opportunity to reinforce responsible spending lessons. It’s all about encouraging independence and responsibility so your kids develop healthy habits that they’ll carry with them into adulthood.
Visit The Beanstalk for more tips and tricks on teaching your kids about money.