Set up a kids saving account now

Friday September 26, 2008

Recent reports claim that raising a child from birth until 18 will cost around $600,000. And that's just one child. You might not realise it as you gush over your newborn, but your cute little baby is going to cost you a mint. Not only is it important that you have a savings account set up to help you raise your child, but you may also find it beneficial to set up a kids saving account and teach your child the importance of money.

A high interest saving account can be arranged as soon as your child is born. Depending on how you want to manage your child's financial future is up to you. You may want to invest the money or open an online saving account so you can keep a close eye on it.

Teaching children how to manage their money can begin when you feel that your child understands what money is. This may be as simple as giving them a small allowance and explaining how a budget works. For example, they may want a lolly. By telling them what coins they need to buy it, they will begin to understand how money works. Children will often begin to squirrel away money in their piggy bank so they can make future purchases.

When they're old enough, you might like to open up a savings account that they can manage and control. Most banks will allow parents to open up a savings account in their child's name and both parent and child can have access to it. If you set up online banking for your child, they can see just how much money they have in the bank. By helping your child manage their money correctly, you will be teaching them useful money management skills that they can use as they get older.

Look for a savings account with our compare savings accounts and find a kids saving account to help teach your child the value of money.

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