A Life Lesson on Saving
Children' saving accounts are an important tool for teaching kids the value of saving and the importance of financial responsibility. I received my first savings account from my primary school. In my second grade class, my teacher collected our funds weekly and made an entry in her ledger. At the end of the school year she walked the class of savers down to the national commercial bank and opened children's accounts for us. I did not close that account until I was in college.
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Other Lessons
According to a report by the US Consumer Financial Protection Bureau, "teaching kids about money and how to save can set them up for a lifetime of financial success" (Consumer Financial Protection Bureau, 2018, p. 1). Furthermore, children saving accounts can help parents teach their kids about the concept of delayed gratification, as they learn that they have to save up in order to buy something they want. As financial expert Dave Ramsey states, "teaching kids the value of delayed gratification is one of the most important lessons you can give them" (Ramsey, 2017, p. 87).
My mother always encouraged saving. As such I learned how to budget, save and invest under her watchful eye. She taught me the importance of saving so that I can make larger purchases.
In addition to teaching kids about the importance of saving and delayed gratification, children saving accounts can also help parents instill good financial habits in their kids. By encouraging kids to save a portion of their allowance or gifts, parents can help their kids develop a habit of setting aside money for future goals. As personal finance expert Beth Kobliner explains, "by starting a savings account for your child and encouraging them to save a portion of their allowance or gifts, you can help them develop good financial habits that will serve them well throughout their lives" (Kobliner, 2014, p. 56).
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Based on my personal experience learning to sacrifice, budget and save are invaluable life lessons. Today I strive to teach my children the same lessons. Hopefully they will learn them effectively.
Traditional Finance and Kids Banking
One key benefit of children saving accounts is that they often come with lower minimum balance requirements and lower fees than traditional savings accounts. This allows kids to start saving without having to worry about meeting high minimum balance requirements or paying excessive fees. As financial expert Suze Orman explains, "children saving accounts can be a great way for kids to start building their savings without having to worry about minimum balance requirements or fees" (Orman, 2015, p. 34).
DeFi on Hive for Kids Saving
It would be fitting to state here that platforms like Hive Wallet would be an excellent replacement for traditional children's banking. Since the onboarding and "account" requirements are available to any parent, they can setup free accounts at anytime. A great kids saving club community could be created to help motivate children.
Image Hive Wallet icon @roelandp.nl
Children saving accounts can help parents instill good financial habits in their kids, setting them up for a lifetime of financial success. This is an excellent platform for laying the groundwork for a child's future.
References
Consumer Financial Protection Bureau. (2018). Teaching kids about money. Retrieved from https://www.consumerfinance.gov/about-us/blog/teaching-kids-about-money/
Kobliner, B. (2014). Get a financial life: Personal finance in your twenties and thirties. Simon & Schuster.
Orman, S. (2015). The money book for the young, fabulous & broke. Penguin.
Ramsey, D. (2017). The total money makeover: Classic edition. Thomas Nelson.
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