Five reasons all kids should have savings accounts

I do not know the reason for becoming the financial planner of USAA, but I think that it can be traced back to the savings account of my childhood passbook. Every time you deposit money you can see the blue book of the new balance.

Everyone wants their children to do their best, some of which will be set up for the rest of their lives using the old version of the existing version. This is five reasons to open a savings account for your child:

It allows them to enter money game. Especially in today's digital world, it is not always easy to explain money to children. This is one reason why piggy banks are still valuable training tools. When I was a child, I started going to check the economic situation every week at that store; I was able to buy candies with what I kept. You can upgrade the course to the level by using a savings account.

It brought a savings habit from early. Saving is the core of economic security, and as a country, we are not doing well in this regard. Beginning early from your child and making a positive habit by urging them to save some allowance, nurse income income or harvest income

It can help you encourage salvation. You can not only teach how much money your child can save, but also motivate it. In our house, the amount of money the children added to the savings account is matched with the amount before 18 years old. This will give great benefit to the work of fast-food worked by our children. At least some of their income can be used for savings accounts.

It gives them a choice of consumption. I am a big fan of the 529 college savings plan, but education is not the only thing that a child may need money in adulthood. They can use their savings for other economic needs. But when a student applies for college financial assistance, remember to consider student money.

This is a foothold. First, by opening a savings account, the child will have access to your banking and credit union communications, tools, and applications to teach money. As you get older, your savings account funds can fund your investment accounts and help them understand the strength of stocks, bonds, and compound returns. Oops, for young people with jobs it may even be possible to start building the future as soon as possible by financing the Ross Republican Army. From a more practical point of view, it may be the way to an apartment car or deposit.

If you have not done so yet, please set up your child's savings account immediately. It may not be a financial planner, but it can help them prepare for adults' economic responsibilities.

J.J Montanaro is an authorized financial planner of USAA, the preferred US financial service provider. Ask questions online

Since I am a bank, this "bank account" is just a spreadsheet. When I was young, I was very excited about the savings account of my bankbook. We examined the child's account, but the cost is too high, logistics is very troublesome. Do you want to manage another account, or do you want to do another errand on Saturday? No, it is not. Third, we pay attention to them. Another thing about real savings accounts is that the interest rate is very low (thanks, Janet Yellen! No, serious, thank you), children actually can not understand how the compounds work . What does it mean that they have sufficient interest income? So I paid them a high rate of 10% per year (according to market standards) and we recombine once a week so that we can see that profit weekly as well as weekly subsidies . (No, you can not save money for me.)

It can be said that it is the reason for depositing money into an interest rate - savings account. The interest on these accounts is usually between the normal 0% of the checking account and the upper limit of the money market account. The best online savings accounts can be up to 2%, and with rare (or no) exits in addition to diligent savings, you gain excellent profits over time. Minimum amount - Because the purpose of a savings account is to make it attractive to savings currencies, the minimum amount is usually lower than competitors' minimum standards. It is not uncommon that savings accounts have no minimum opening balance or average daily balancing requirements.