Why should you consider opening your child's bank account?

Every parent wants their kids to have a safe and secure future. This security could be in financial security as well. If children could have their savings account in banks at a young age of 12-14 they can surely understand the importance of personal finance. Also, with some interest rate your child will have a handful of money before becoming an adult. Some benefits could be: 

Learning about goals: while a child is very young, you can seed the knowledge of saving money and using it correctly. This will surely be helpful for them when they grow up. 

Taking responsibility: If you want to make your child responsible, you can take this charge of teaching them about personal finances.  

According to a study, children began developing emotional reactions to spending and saving money around the age of 5 to 7. The study also found children’s emotional reactions translated into real-life spending behavior, and early spending behavior might indicate poor financial decisions later. All of this highlights the importance of early education to get kids on the right financial track.

Teaching them compassion and perspective: Using a saving account to save money, watch it grow, and use it to buy things shows kids how financial resources are tied to what people have and don’t have, what they can afford and what they can’t. Kids can begin to understand that the things they and their family own are the result of planning, choices, and work. This lead to more thoughtful decisions regarding their own spending choices, also it can lead to a more compassionate view of others when they understand why someone can’t simply buy what they want or need whenever they want.

Teaching them the value of investing: investing is a very thoughtful thing to teach your kids about, while teaching them how to spend money. When kids will grow they could understand the points well. So while giving their friends a party or gifting parents for their anniversary they will make right use of money without unnecessary wastage. This will make them wise, responsible, good investors in life.