Bank accounts for children - how to maintain kids savings motivation
Life’s uncertain, and as parents, we all want the best for our children and their future. One of the great ways you can help out is to get your kids into healthy money habits early on, whether that’s opening up their own savings account or teaching them to have savings goals they can commit to. That way, they’ll be well-equipped to handle their finances once they’re older and they’ll be more than ready to tackle the tricky financial challenges of adulthood.
Being able to save money has no age limit. But of course, we all know how tedious savings and miserliness really are and they're even more so if you're little and in need of presents now.
Looking for ways to motivate your kids to use their bank account and build their savings wisely? Here are Mozo's top five cardinal rules for the savings playground:
1. Show them how their pile is growing
If there’s one thing that’ll make your children feel like their money-saving efforts are slowly paying off, it’s being able to watch their hard work turn into rewards.
So make sure you’re finding ways to show your kids just how much pocket money they’re saving up in their account each month. This could include anything from printing out regular bank statements and breaking down the numbers for them, to more fun and creative activities like having them draw up a colourful graph that tracks their savings.
These strategies will help to get your children into the habit of keeping a regular eye on their bank account. And more importantly, it’ll make the kids feel like they’re in charge and managing their own finances.
2. Give them a savings goal (or more)
Why save for a rainy day when you're perfectly happy jumping in puddles? Small, achievable and enviable goals can help kids stay focused on savings projects. They’ll also go a long way to teaching kids to think about money more wisely and say no to spontaneous purchases.
So if your children desperately want the latest toy that all their friends have been talking about, or they’re keen to get scented gel pens for school, have them save up for it.
For the little savers who are up for a bigger challenge, you could even help them set up multiple savings goals. That way, they’ll learn about budgeting and get some essential practice in making decisions about how much money they want to contribute to each goal.
And of course, don’t forget to sit down with the kids and map it all out! Mozo's savings goal calculator will crunch the numbers to show just how soon that superhero action figure will be theirs.
3. Reward them for saving
Are your kids meeting their savings goals? Are they stashing pocket money inside their bank account rather than spending it without a second thought at the local candy store?
Then it’s time to reward your kids for these small savings successes. Since their hoarded pocket money may not add up to a devastating fortune, a parental contribution for prudent scrimping can be a great motivation for them to save up even more. For instance, each time your kid saves $10, you could add an extra $2 into their account.
Children's bank accounts that reward regular contributions are another good way to encourage kids to keep saving up. It’ll get them into the mindset that saving up more can earn them more in the long run - which means more delightful opportunities to buy what they want.
4. Lead by example
As a parent, you’re the figure your kids look up to for everything, and that includes how you spend your money and handle your finances.
So being a good role model - whether that’s comparing prices before making purchases or having a good budget in place and not splurging your monthly income right away - can go a long way to motivating your kids to do the same!
You could even introduce them to the family budget, and have them give you a hand with making or reviewing the budget as your personal money assistant.
While you’re at it, don’t be afraid to also have open, honest and transparent conversations with the kids about your own expenses, savings and financial goals. It’s likely they’ll appreciate your insight later down the road, when they’re faced with the same financial burdens as you have.
5. Pick the perfect savings account
Every kid is different - some may just be starting out and testing the waters of money-saving while others are already becoming masters of their finances. But no matter what stage your child may be at, there’s a savings account out there for every kind of tiny saver.
Some bank accounts are more of a set-and-forget option. You and your kids won’t need to do anything to earn interest except plonk their pocket money into the account and watch the savings grow.
Other bank accounts, with higher interest rates attached, are better for kids who are ready to step up their savings game and start earning money more seriously. While these accounts can really plump up your child’s bank balance, to score this higher interest, kids will usually need to meet certain criteria each month.
Want to learn more? Check out the top kids savings accounts in the market which won our 2019 Mozo Experts Choice Deposits Awards, or head over to our kids savings accounts comparison table to find the perfect piggy bank for your little one.