It is very common to have a baby shower when you’re pregnant and gift givers give you cash/money. When the baby is born, it is very common that well-wishers give you cash/money. When your baby has their first birthday party, it is very common for your child to receive cash/money. And as the special occasions roll around each year such as Christmas, birthday’s, loss of first tooth as well as other milestones it is common that your child may receive cash/money.
How and where do you keep your child’s cash? What do you do when your child is given a check? What do you do when they are given a check with their name?
Do you stash the cash in a piggy bank? Do you deposit the cash in your own account and remember how much they have? Do you ask the check giver to write another check in your name? And when you do cash the check where does the money go?
A few institutions still offer Kids Club accounts. At Hawaiian Tel Federal Credit Union, they offer Kids Club Accounts for children newborn to 12. Their Kids Club accounts encourage the children to save by giving them savings tokens. The child can save the tokens to redeem for merchandise. The merchandise ranges from pencils, die cast cars, lunch totes and duffel bags. The employees at Hawaiian Tel Federal Credit Union encourages saving and rewards each child when they do. Also, for a limited time you can score two free tickets to the Harlem Globetrotters October 14 or 15, 2017 game when you open a Kids Club with $208. They have the extra $8 because they are celebrating their 80th anniversary. Congratulations to them on their great milestone!
Opening a savings account for your child will be extremely helpful when you receive a check in your child’s name and alleviate the accounting of how much your child has and have used from your account.
Having a bank account for your youth is a great practice to instill the value of saving and introducing them to the world of finance. However, it is your child’s money so letting them keep some in the piggy bank for a quick withdraw may keep them motivated about money responsibility. What do you do?