Getting your child their first bank account is a great opportunity to introduce them to money concepts like earning, saving and responsible spending.
When’s the right time?
There’s no golden rule here. It can be when your child starts primary school, first gets pocket money or when you think it’s time they started to learn the value of money. Or it could even be when your child is first born so you can start saving on their behalf.
Explaining what a bank account is
When you set up your child's first bank account, involve them in the experience (if they're old enough).
Make sure your child understands that the bank is keeping their money safe until they’re ready to use it. Demonstrate this by showing them how to check their account balance – encourage them to do this regularly.
Depending on your child’s level of understanding, you may also want to introduce the concept of the bank paying interest, explaining the more they save, the more interest they will earn.
Start saving
Paying money into your child’s account as pocket money or as a reward for completing jobs is a great step towards saving. Encourage your child to check their account once you’ve transferred money across, then ask them how much their balance or savings have grown.
Having a reason to save is really motivating for children. Encourage your child to set a savings goal e.g. something they might like to buy, and together work out how much your child will need to save each week in order to have enough to buy it. Take a look at our Youthsaver Account. It's a savings account for under 18s that offers bonus interest for regular savings.
