There are so many habits and values that are best done as early as possible for the development of a person’s overall well-being. These include healthy financial habits and the value of money. As soon as your kids get pocket money, you can start teaching them the basics of saving. You can do this by opening a bank account for them in Australia.
Take them to a bank and show them how to deposit and withdraw money. This real experience will make them appreciate what they have.
Some people may think that banking may be too much for kids to handle. Terms such as Australian bank interest rates, deposit, withdrawal, and maintaining balance can be overwhelming for them. But when you think about it, opening a bank account can be beneficial. Here are three reasons you should open a bank account for your child:
- Build healthy financial habits. By opening a bank account for your kids, you are giving them an opportunity to learn important financial lessons that they can take with them when they reach their teenage years and adulthood. As they watch their savings grow, they will learn how to allocate money towards certain goals. At an early age, they will realise the difference between need and want and how to save to purchase something. They will know the amount of money that’s coming in and out, so their spending habits will likewise be developed.
- It’s a great venue to talk about money. Some adults are not comfortable with discussions about money and income. Couples, for instance, tend to ignore talking about money-related issues. But if you open a bank account for your children, you’ll have a great opportunity to talk about it, why it’s important to save as early as possible, and what they can get out of it.
- Letting them take control of their money makes a lot of difference. “Give me fish when I’m hungry. Teach me how to fish and I’ll never be hungry again.” This also holds true for saving money. Setting money aside from your kids is different from opening a bank account for them and letting them manage their own money. Take them to a bank and show them how to deposit and withdraw money. This real experience will make them appreciate what they have.
When it comes to finding the best one for your child, it is important to compare bank accounts and Australian bank interest rates. Knowing the offerings of several banks will greatly help you in finding the account with competitive interest rates and lower fees.
Do you have other tips on bank account comparison especially when opening an account for your child in Australia? You can share your banking ideas in the comments section.