Parents want only the best for their children, and this includes teaching them the value of money as early as possible. Kids can learn it in numerous ways. One of them is to open a savings account. But with so many banks offering a wide range of savings accounts, how can you choose the right one for your children? Here are some things to consider:
One bank for the entire family
One of the advantages of having all of your family’s savings accounts under one bank is that it’s convenient to make any form of transaction.
Consider the financial knowledge of your kids
Younger children may need a savings account with only the basic features. Those who have experience in saving their allowance in a piggy bank may be up for a savings account that requires a minimum deposit on a regular basis. Their level of knowledge in money management can greatly help you in deciding which is the best savings account for them.
Compare savings accounts
Don’t open a savings account on the first bank that you see. Find the right one by comparing several high interest savings accounts in Australia. Bear in mind that your kids should have a good foundation towards a secure future, so make sure to shop around first before you settle on a bank.
Know the tax implications
Rates on taxation usually change so make sure to stay updated. Tax may be payable by either the parent or the child, depending on the interest being earned in the savings account. Another scenario is your kid’s savings account can earn a specific amount within a certain period without having to deal with taxes.
Go for the tried-and-tested bank
Of course, having a good relationship with a trusted bank can provide a lot of insights when you’re looking for a savings account for your kids. Ask your bank about their offerings when it comes to accounts suitable for children.
One of the advantages of having all of your family’s savings accounts under one bank is that it’s convenient to make any form of transaction. If you need to transfer funds or check the balance, you can do so quickly in one bank. It also opens an opportunity for the entire family to deposit money into their respective accounts at the same time. Parents who save money regularly can be good examples to kids and hopefully, they will do the same.
Opening a savings account for your children is a great way to teach your kids the value of money and how to be financially secure. The key is to find the best savings account for them so you can build a strong foundation for them towards a secure future.
Do you have other tips on how to compare savings accounts in Australia? Share your insights in the comments section.