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Teaching children about money can be one of the most valuable steps toward building lifelong financial wellbeing.
Many families begin with pocket money: a simple and easy transaction for weekly chores or good behaviour. When structured in this way, pocket money teaches children that you can earn purchase power for hard work, whilst laying the groundwork for financial responsibility.
But the transition from pocket money to a kids’ bank account is where the real learning begins. At IMB Bank, we know that opening a kids’ bank account can give children hands-on experience with saving and spending in a way that mirrors real life, helping them build confidence and healthy money habits early on.
Read on to find out how a kids’ bank account teaches real money habits.
Pocket Money Becomes a Real Learning Tool
For most children, the first connection they form with money comes from earning pocket money.
Remember when you did a couple of chores and mum handed over two dollars? For the first time, you could buy your own Paddle Pop, go to the local pool with your mates by yourself, or pick up a lip gloss you had your eye on. You might even stash it away in a piggy bank. Because that feeling of satisfaction and self-reliance only grew with each dollar saved.
This experience still resonates with kids today. Levelling up with a real bank account can be a solid learning experience, creating a foundation for financial responsibility.
Once that money moves into a kids’ bank account, their understanding about how adults do things can grow. As they begin to see their balance start to get bigger, they learn how to add to it and discover how spending affects what’s available.
With a bank account, money doesn’t just become something that disappears into a piggy bank, it becomes something they manage with purpose.
Kids’ Bank Accounts Create Real-Life Money Experiences
A kids’ bank account could turn everyday moments into practical lessons.
Understanding how to save, and how much money goes into buying the things they want can be taught at an early age. For example, if they want the latest online game that is popular in school, they can check their bank account to see if they could afford it.
Similarly, if they receive money as gifts for their birthday or Christmas, they can save to buy something they really want. They can set goals, do maths and plan for the future.
These simple lessons can teach the basics of budgeting and the idea that money decisions come with outcomes. It also helps them understand that once money is spent, it doesn’t come back.
Encouraging Conversations About Spending and Saving
A kids’ bank account naturally opens up important discussions at home.
Children become more curious when they see their balance and follow where their money goes. This creates opportunities to talk about the difference between wants and needs, the importance of saving a portion of their pocket money and how to set realistic goals.
For example, the toy mentioned above can be used to prompt a conversation about whether the child wants the toy right now, or whether they could wait for a sale (or the newer version due out in a few months) and grow their money even more in the meantime.
These conversations can build confidence and help children form a positive relationship with money long before they need to manage it on their own.
Setting Up Lifelong Money Habits
A kids’ bank account is more than a place to store pocket money. It could be a tool for building skills that last well beyond childhood. It also helps teach responsibility and planning, which are both qualities we all use to help manage money later in life.
When paired with gentle guidance and open conversations at home, a kids’ bank account becomes one of the most effective ways to build genuine financial habits from an early age. That’s why we’ve created the IMB Zoo Account, for kids aged 12 and under. This account is built to make saving fun and rewarding.
For example, every six months accountholders receive their statement which includes colouring-in competition,¹ adding a creative touch that appeals to younger savers. Plus, new IMB Zoo Account holders get a warm welcome with an exclusive IMB Zoo gift when they join.²
From the day you sign your kids up for IMB’s Zoo Account, they’ll get an opportunity to start building healthy financial habits that could set them up for life.
