For couples who’ve decided to have children, the decision brings on new financial considerations. From diapers and day care to clothes and college, the costs to raise kids seems to be never-ending. The good news is a savings account can help you be prepared. But when is a wise time to open one? Here is a helpful guide on this timeline and the importance of teaching children about saving.

When Is a Good Time to Open a Child’s Savings Account?

Some parents prefer that their kids attend private schools. If you’ve honed in on one in your community, find out how much the tuition, books, and other related expenses would be to attend for either elementary, middle, or high school years. Once you have a rough total, you’ll have an idea of how much to save to cover the costs. If possible, open the account before the children reach pre-school age.

If you’re among the many parents and guardians who want their kids to go to college, it’s best to open a savings account as soon as possible. Ideally, secure one when the child is a baby or toddler. This will give you at least 17 years to start putting funds away. Consider arranging automatic withdrawals from each paycheck into the savings account. As your financial status changes, increase the amount.

Your child’s life beyond education is also a factor. From the venue and catering to the flowers and gown, weddings can get a bit pricey. Starting a savings account now to pay for the special occasion will help defray some of the expenses when the time comes. If a destination wedding is a consideration, factor in the costs for airline tickets and hotel stays. Building a nest egg early can alleviate some of the sticker shock later.

How to Teach Kids About Saving

By kindergarten, when kids start to learn about numbers, have discussions about saving money to buy a favorite toy or clothing item. Teach them about the cost and how long it would take to have enough money to pay for the item.

As your child gets older, talk about wants and needs. Do they really need the latest video game or, with the new school year about to start, would new shoes make more sense? Discuss financial priorities and where the money should go. Parents may also encourage pre-teens and teenagers to get summer jobs so they can contribute to their savings account.

It’s never too early to open a savings account for a child. Along the way, you can teach them about spending and other financial habits that will serve them well when they become adults. Spirit of America Federal Credit Union in Lincoln, NE, offers a variety of savings options to fit your budget. The member-owned, not-for-profit cooperative makes it easy to build savings with little to no fees. To learn more about savings accounts, call (402) 467-1102 or visit their website. There, you’ll find extensive information on all products and services and how to become a member.