Getting into the habit of saving money takes practice. But if you start your children early, they’ll be all set to start saving as they grow up.
A savings habit is exactly that – a habit. It takes time and practice to learn how to do it.
But with the right savings account you can get your children on their way from an early age.
A youth savings account is a great way to start them off. With these accounts you can manage savings on your child’s behalf, so you’re always in control.
And when they’re old enough, you can transfer it over to them so they can start managing their own money.
Giving them a helping hand
Members of the family might want to lend a hand too and pay into your child’s savings account to contribute to their future.
They can pay in regular savings like a monthly standing order or a lump sum on special occasions like a birthday.
You could even encourage your child to contribute to it themselves. By putting away a little pocket money each week they could start to build up their savings.
Rather than spending money on lots of smaller things, they’ll have built up enough to pay for something really special.
Plus, they’ll earn interest on their money so they can watch their savings grow faster.
It’s a great way to teach them about saving and they’ll see for themselves the value in putting some money aside.
Handing the account over to your child
When your child reaches their sixteenth birthday they are usually eligible to take over their savings account, depending on the account terms and conditions.
You can either transfer the savings to them as an Instant access savings account for them to take full control and responsibility. Or continue to manage the account on their behalf, until you feel it is the correct time to hand over this well-earned nest egg.