What is the right age to open a bank account for your child?
Our son is a young 2.5 years, but has already expressed some interest in money. For example, I've had several conversations with him that go like this:
Son: Daddy, I want that car.
Me: I'm sorry, we're not going to buy that right now.
Son: Daddy, can I buy that car?
Me: Do you have any money with you?
Son: Yes.
Me: Ok, where's your money?
Son: It's in your pocket. In your wallet.
Me: That's my money, and I'm not going to use it to buy that car right now.
I know 2.5 years is still very young, but I would like to teach the concept of money and cost to him over time. Of course, having good counting and numerical concepts need to come first.
I also have very fond memories of having a passbook savings account when I was a kid. Does something like this exist? At what age should I think about being more formal with his money and allowing him to make his own purchase decisions?
2 Answers
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A Grandmother says, Why not start now, in a small way? Obviously, at 2 1/2 coin or paper money recognition and value is out of the question. But --- you could begin in small ways with a simple savings bank, piggy bank, or even a clear jar, where your son could see his money " grow". He could even " earn" a coin by doing a small chore, like putting his toys away or helping around the house with a simple task. I like the idea of using a clear container that can be opened easily. Chances are, your son will want to see his money often and handle it-- with supervision. Your son could earn money for his " work", and begin the concept of the value of earning and saving money. You might have to set up a system where you have a visual, concrete card ( or something similar) where the outlines of coins could be placed to show your son if he has enough money to purchase a single item ( such as 4 quarters for a car, or a banana or other small item.) I wouldn't be too strict about tax etc. at this age! All of this money management might entail some planning on your part, but if you really want to introduce money concepts at this age you could try it. Be prepared for a small tantrum when your son does not have the money it takes to buy the item he wants. You could even consider secretly subsidizing the bank amount for now-- while he is too young to comprehend what is going on ! A Grandmother might even be a good source of " money" gifts for the savings jar! :-)
Yeah, we too have a savings account for our kids, but this is for large gifts as your mention, and saving for college, not for spending on candy and toys. :)
- Steve Lacy, Dec 4, 2009