When to open a bank account for a child and with what money
The generation that is between 50 and 60 years old has had a difficult time. They passed a similar crisis to the one we are slowly overcoming today, based on much effort and sacrifice.
That generation had no money to go on vacation and there were no facilities to study. No one doubts all these difficulties. However, the current generation faces an even greater problem: a higher unemployment rate than that suffered in previous crises. The situation is more difficult, if possible, because the current generation is trained and prepared to assume responsibilities that the Spanish labor market does not offer. This creates a frustration that has ended with many Spaniards emigrating to other countries of the European Union.
While the generation that is currently 50 or 60 years old was able to acquire a home at a reasonable price, the current youth is forced to live on rent, at best. The aforementioned labor instability forces him to do so. According to various studies, the average age of emancipation is 28.9 years in Spain.
The help of parents to children
For all the above, parents continue to help their children when they can, but they must also educate them in a culture of savings. Despite being parents with great purchasing power, it is highly recommended that children learn the value of money from children, that they know what it costs to earn it and that saving culture is common among their habits.
Having a tool like Good Credit, aimed at young and old, helps to control what you have, what is spent and what is saved simply and effectively, to be aware at all times of what we have. In short, these types of tools can also be used as a formula for education. Through its graphics it is possible to make the little ones understand the importance of money, expenses, etc., thanks to such a simple and visual interface that even a child can understand it.
Young Savings Account
The best option to start the child savings is to open a bank account modality that is commonly known as Youth Savings. According to an article published by the online financial community, the best banking products of this type are:
The most advisable thing is to open this type of accounts at the end of school, at which time, by age, you will better understand the value of money, and will have to face your first decisions about what and when to buy it, learning to prioritize personal expenses.
Another trick to educate the young ones about good financial values is to deliver a monthly payment, instead of every weekend. This way you will learn to manage what you spend.
Using Good Credit can help you learn how to manage this new situation. From our mobile, we can show the evolution of your account to the minor, and how savings generate interest and money that he can manage in the future as he wishes.
How to open the account
The common thing is to open an account in your name, but with the parents as authorized so that there is no problem and be able to monitor what movements are made. Let him or her manage your money, but be a little outstanding, especially at the beginning.
There are different opinions regarding the initial amount to enter. In summary, the amount will depend on the parents’ purchasing level, in the sense that they should not be overexerted. In addition, it is not necessary to make a huge opening, since we do not want to transfer to the minor that money is ‘given away’, or appears magically in your account. In fact, 200 euros, is more than correct amount for this purpose, since the goal is for the young person to understand that it must be him, with contributions that they make on birthdays, parties and other events, the one that ‘fattens ‘that figure.
An account at an early age
For parents who open an account to their children in communion, for example, it is best to be a savings account in which parents are a beneficiary, and when the time comes, you can use it for something that benefits a child. When a child is 9 or 10 years old, he is not aware of money, and it is not convenient for him to even know that he has an account in his name.
In these cases, it is best to buy something you need with that money, and the rest, save it for the future. From a young age they know that you can’t have everything, that you have to save and that money costs to earn it. We do not know what they will find in their work stage, nor the opportunities they will have, so it is better that they are prepared for what they may eat.