Title

Kids and Money: Bank Accounts

(FE1972, July 2020)
File
Publication File:
Summary

Part of a financial newsletter for kids and parents, this issue explores bank accounts.

Lead Author
Lead Author:
Revised under the direction of Carrie Johnson, Extension Personal and Family Finance Specialist
Other Authors

Julia Fabijanic, Extension Intern (Undergraduate Student, Human Development and Family Science) Candace Kornelsen, Graduate Extension Assistant (Graduate Student, M.ed. in Counseling)

Availability
Availability:
Available in print from the NDSU Distribution Center.

Contact your county NDSU Extension office to request a printed copy.
NDSU staff can order copies online (login required).

Publication Sections
Purse money and piggy bank
Kids and Money - a newsletter for young people
A newsletter for young people

Bank Accounts

What is a bank account? A bank account is a place where you can store money you have earned and/or received. Many types of bank accounts are available, so you will want to talk to your parents to figure out the best bank account for you.

A savings account is a type of bank account you can open. It’s a good thing to start young, even if you get some money only a few times a year. If you put in just $5 to $10 of your birthday money or the money you got for helping at home into a bank account, you could save $15 to $40 a year.

Do you have any money saved up? As mentioned earlier, you may have money saved from different things here or there. That money is yours and you need a place to keep it safe.

So what do you do with it? You may have a wallet or piggy bank you put it in, but did you know that if you open a bank account, the bank will keep your money safe as long as you’re being safe with it? You can put all or just some of your money into a bank/savings account where you can earn interest.

Interest is like getting free money. All you have to do is put your money in a savings account and leave it there. Easy. Interest usually is a small percent of the money you have in your account, but the more you save, the more it will build through time.

Financial Institutions

What is a financial institution? It’s where you can store your money safely. Different financial institutions include banks, credit unions and savings and loan associations. At your age, savings is one habit you should be looking into because the earlier you save, the more money you will have in the future.

Where to out your money Why should I put my money there? Is putting my money there a good idea? Why?
Piggy Bank

 

 

 

  
Bank Account

 

 

 

  
Other

 

 

 

  

 

Money and Your Kids - a newsletter for parents
A newsletter for parents

Bank Accounts

Does your child already have a bank/savings account? If not, then maybe now is the time to start thinking about setting up an account for him/her.

Kids should learn how to save money when they are young. Setting them up with a bank account now could help them in the future and help them learn to save money. Teaching kids about banking and the benefits of putting money into a bank is important.

For example, if they start a savings account now, they will collect interest. Yes, interest is a very small percent of what is in the account, but the more they save and keep that money in the account, the more they will make through time.

Having a bank account could be a safer place for them to keep any money they have instead of keeping it in a wallet or lying somewhere around the house, which isn’t as safe. Putting some of their money in a bank account could help them save because taking money out would be harder and they might even forget about it and, therefore, not spend it.

Sit down with your children and set a realistic goal of how much they could be putting into a bank/saving account every month. Teach them about different financial institutions, especially savings.