Multiple Advantages to Teaching Kids about Banking

Having a written budget that includes setting money aside for the future is an essential piece of successful financial planning. When young people have a goal they want to work toward—like college, a major purchase, or a travel adventure—they become motivated to save. But stuffing money in a jar marked “Ski Trip,” even if it’s hidden in a closet, is pretty risky. Teaching kids about banking and helping them form a relationship with a bank is a much better idea. Building a strong banking relationship provides kids with many benefits, now and into adulthood.

Banks and credit unions have an interest to teach kids about money because those youth will become their future customers. Banking essentials that young people should learn include how to locate and choose a financial institution with which to do business, how to set up a proper account structure, and how to budget income in a way that promotes saving.

It’s never been more important for kids to open bank accounts, and saving money is a valuable learning experience for a child of any age. Here are some of the benefits to helping a child develop a relationship with a bank or credit union:

Financial education skills. Setting up a child’s bank accounts opens the door for teaching personal finance.

Motivation. Youth get excited when they start seeing their money grow.

Lasting relationships. The longer a person stays with a financial institution, the better the relationship grows—which can translate into better terms and a more streamlined banking experience.

Helping children choose a financial institution and open accounts are an important piece of teaching kids personal finance skills that will brighten their futures. Over time kids will come to enjoy the process of saving and learn valuable lessons about why it’s important. And by the time they’re ready to retire, they’re likely to have a tidy nest egg that will help them live out their golden years in comfort and style.