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Home News How to Set Your Children Up for Financial Success

How to Set Your Children Up for Financial Success

Posted on | Categories: Financial Education, Savings

How to Set Your Children Up for Financial Success

Many parents want to teach their children smart financial habits. But do you know where to start? Do you know when is the right time to open a savings account for your child? Do you know when they should be given access to a debit card or a credit card? At Fairfax State Savings Bank, our goal is to help parents give their children the tools to develop strong habits that will pay off throughout their financial future. Check out these tips to learn more.

Give Your Child a Savings Account Early

Many parents open a savings account for their children soon after they are born as a way to start saving for their child’s future. Once you feel your child is old enough to understand the concept of saving, we encourage you to involve them in the savings process by giving them their own savings account with benefits focused specifically on them. Encourage and help your child to make regular deposits to their account, be it with birthday money, their allowance or other gifts they receive. Most importantly, you will still maintain full access to the account and no withdrawals can be made without your permission. 

Bank Accounts for Teens

As your child ages, their relationship with money changes. If you have a teenage child, they will have different needs from their banking account and will require some more financial freedom. We recommend teens still maintain a savings account, but that parents also help their child by opening a checking account. A checking account presents a new set of responsibilities for your teenage child, including:

  • Making regular deposits
  • How to use a debit and/or ATM card
  • Being aware of their account balance to avoid overdrafts

At Fairfax State Savings Bank, we know that helping your child develop smart financial habits is important. Please contact us to learn more about which accounts are the right choice for your child to be set up for long-term financial success.