It’s time to shop for new pencils and notebooks, make plans for after-school care and purchase a new school year’s wardrobe. For parents, back to school is a time of expenses. It’s also a great time to start teaching children financial skills through a back-to-school savings account.
Financial literacy is a critical skill for adulthood, and there’s no better opportunity to start teaching it than with a Student Savings Account from Points West Bank. Even before children learn basic math skills such as addition and subtraction, they understand value – and that’s the basis of all savings plans. Even school-aged children can get excited by watching their account balance grow.
A childhood savings account teaches children on two levels: On a fundamental one, it illustrates the importance of avoiding instant-gratification spending by saving for long-term goals. If your child receives an allowance, put a portion of it each week toward savings. By watching small contributions increase their account balances, children get a firsthand look at the power of regular savings. By checking balances online, they receive regular reminders of the results their habit reap.
Back to school savings accounts give older children additional educational opportunities. Most obviously, math concepts as simple as basic addition and subtraction can be illustrated by statements, while older children can learn advanced theories such as continuously compounding interest rates. Of course, other life skills, such as developing a household budget and understanding the basics of banking, can be directly extrapolated by a hands-on banking experience.
Points West Community Bank wants to make banking easy for students and their families. That’s why our Student Savings Account offers savings plans for children under the age of 18. With only a $10 minimum balance and no dormant fee, the account was created with children’s needs in mind.