The How-Tos of Opening Your Child’s First Savings Account

My mom worked for a bank for over twenty-six years so I basically grew up with frequent visits there. As a kid, money was of little interest to me – pun intended – and although I was fascinated by the length of numbers printed out on rolls of paper on Nanay’s desk, I wasn’t one to value saving.

Now a nanay to an almost five-year-old who literally prays for her “monthly toys,” I know it’s time to teach her about prudence with money, the value of saving, and the satisfaction that comes with disciplined spending when it’s hard-earned.

One way to do this is by opening a kiddie savings account. If you’re opting to make today your child’s day one, here are some of the things to take note of.

Check the advantages and inclusions.

They may not know it yet but saving early could mean they could retire early. Aside from learning the value of money and controlling how it is spent, having their own savings account secures their health and future in the event of unfortunate and inevitable scenarios.

Some of the factors to keep an eye on are:

• Eligibility – Depending on your bank of choice, the range is often open to children or teens from 0 to 18 years. Be keen on the details though, since there are savings accounts that will be converted to a regular one when the child reaches a certain age.
• Initial deposit requirement
• Minimum maintaining balance
• ATM and/or passbook options
• Fees and charges
• Benefits – Banks offer a wide array of inclusions to a kiddie savings account. Examples are free education trust benefit, personal accident insurance, free dental and medical benefits from partner healthcare providers, and medical reimbursements.

Prepare the requirements.

Once you have chosen a bank and decided on the specific account to open, make sure to accomplish the necessary forms and submit the required documents. According to your child’s age, these may include:

• Original copy of the birth certificate issued by the Philippine Statistics Authority (PSA);
• Copy of school ID signed by the principal;
• Valid government-issued IDs of parents or legal guardians;
• Guardianship or adoption documents, if applicable; or
• The child’s 1×1 or 2×2 photos.

Loop the little one in.

It would be good to have your kid participate in all the steps to opening his or her own account. Not only does this give them a sense of responsibility, but it would also help in boosting their independence and confidence. This sense of trust from their parents will aid them in discovering the joy of handling their finances well. Train them today and they will not depart in this wise management of wealth until they grow up. They’ll thank you for it later.

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