Should you start a savings account for your child?

The sooner your child can learn the basics of finances, the better — and a savings account provides a perfect starting point. Not only will they learn the value of saving and see their funds grow alongside them, but they’ll also be exposed to many other useful money habits and skills for the first time. We’ve put together a guide detailing the benefits of savings accounts for kids to help you decide when it would be wise to open one for your child.

The benefits of savings accounts for kids

When a child has a savings account, learning opportunities about key banking concepts present themselves. You can help them keep an eye on their account balances, make deposits and withdrawals, and even understand how interest is making their money grow. They’ll also pick up smart financial habits, like spending responsibly while saving for bigger goals. Savings accounts teach delayed gratification, showing that all contributions add up over time, accumulating toward whatever goal your child is saving up for.

As your kiddo gets older, their savings account experience will boost their confidence in handling money. Eventually, they’ll be ready to graduate to a checking account of their own, with a head start on financial independence and responsibility thanks to the hands-on experience a savings account provides.

When will my child be ready for a savings account?

At UBT, we’re often asked when kids should be taught to manage money, and our answer is always as soon as possible! And savings accounts are a great way to learn money management skills that will last a lifetime. Whether it’s an adult saving up for a house or car or a kid saving up for a brand new toy or video game, the principle is the same — if you set your money aside, it’ll steadily grow, helping you reach goals you otherwise couldn’t.

How do I open a savings account for my child?

Our Simply Savings Student account is specifically designed for younger people, making it an ideal place to get your child started on saving. This account is also part of our Piggy Bank Match promotion, where we’ll match up to $25* of your opening deposit when you open a new Simply Savings Student account online or in person for a child age 13 or younger. This is a great way to put any piggy bank savings to use, transitioning your child to their very own bank account with your supervision. Click here to open an account online, or stop by your local branch and speak to a friendly neighborhood banker today (and bring your little one, too!).