5 reasons to open a savings account for your kids

You may already be putting money aside each week to help pay for your kids’ education, first car or wedding, or 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 people choose 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. Consider making having savings normal for your kids.

They’ll thank you one day

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

Find out more about IMB's Zoo Account for kids

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Important Information

This article has been prepared by IMB Bank and contains general information only. It is not intended to be relied on as advice. It does not take into account your objectives, financial situation or needs. You should seek your own legal,  financial, taxation or other professional advice before you make any decisions about your business. Consider the relevant Terms and Conditions or Product Disclosure Statement and Target Market Determination available here before deciding whether to acquire any products or services offered by IMB Bank. Lending criteria, terms and conditions, fees and charges apply to IMB loan products.