Kids Money /

5 reasons to open a savings account for your kids

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You may already be putting money aside each week to help pay for your kids’ education, first car or wedding, perhaps all three. So why do they need their own savings account? Here are 5 things to consider.

It’s a reason to talk about money

Money is a topic many of us avoid altogether. You may find it stressful to talk about, perhaps you think it’s impolite to discuss it or maybe it simply doesn’t occur to you to chat to your kids about money. There are plenty of reasons not to talk about money and with today’s cashless approach to handling day to day finances there often isn’t an opportunity. Opening a savings account for your kids can also open a discussion about money; how to get it, what to do with it and why it’s important to save it.

If it’s mine, I’m involved

Benjamin Franklin said it best ‘Tell me and I forget. Teach me and I remember. Involve me and I learn’. The difference between you setting aside some money each week for your kids and giving them their own savings account to manage is significant. Everything changes when they are the ones handing over the money.

It’s an opportunity to establish lifelong habits

A quick look at the nation’s credit card debt will tell you that there are some Australian adults who don’t have a good grip on their finances. By encouraging our kids to get into the habit of saving money regularly we are hopefully teaching them an important skill they will have for life. Developing a habit of setting aside a bit of your allowance each week and understanding that you sometimes have to wait and save up to buy something are two fundamental money management skills.

Get your kids used to having money

We are creatures of habit and we often strive whether consciously or subconsciously to create a situation for ourselves that is our version of normal. Make having savings normal for your kids.

They’ll thank you one day

Just like learning to clean your teeth and use your manners, saving is a valuable life skill. Give your kids an opportunity to start out with the right approach to money, they will thank you for it later.

 

Enquire about an IMB Bank Account for kids

Why choose IMB Bank?

Established in 1880, IMB has been helping people achieve their financial goals for 139 years. IMB offers a full range of banking solutions including home and personal lending, savings and transaction accounts, term deposits, business banking, financial planning and can arrange a wide range of insurance and travel products.

IMB has a growing branch network throughout the Illawarra, Sydney, NSW South Coast, the ACT and Melbourne. We have a lending specialist in every branch and a team of mobile lending specialists who will come to you. IMB members enjoy access to free automated phone and internet banking and a team of professionals who are just a phone call away at our locally based call centre.

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