Opening a Bank Account With Your Children is a More Effective Way to Teach Financial Literacy
Toronto, ON – August 15, 2012 – Camp is over, fall activities don’t start for another month, and your children are getting bored. Rather than spending money trying to entertain them, why not use this time as an opportunity to teach your children how to SAVE money? RATESDOTCA, Canada’s independent rate comparison site, suggests turning money management into a fun field trip by heading to the bank to introduce your child to his or her first children’s bank account.
“There has been a lot of talk about the fact that children are not being taught Financial Literacy in schools, but in my opinion, learning about saving, spending, and the value of a dollar is something that should really be part of a child’s education – even before they enter school,” said Kelvin Mangaroo, President of RATESDOTCA. “As a new parent myself, I am very motivated to teach my daughter about money from very early on. But I’ll probably wait until she’s eating solids first.”
Research shows that if children are exposed to money matters early in life they will be better equipped to handle their finances as they get older. One great way to start this learning cycle is by opening a bank account in your child’s name. Many banks and credit unions offer special bank accounts just for children, to help get them started on the road to financial security. Managing these accounts teach children valuable lessons in understanding fees, assessing a product for its features, and responsible debit card use.
RATESDOTCA offers comparisons on a myriad of different bank accounts, including savings accounts specifically geared for children. Doing your research along with your child is a great first step in the learning process, and is a fun and educational way to spend a day before school starts.
Opening a children’s bank account is just one step in the journey to financial literacy. Rubina Ahmed-Haq, columnist for RATESDOTCA blog, suggests these additional great tips for raising a spend-savvy child:
- Just say NO… to piggy banks. Piggy banks teach kids that saving money is a mystery and that putting all of your money in one place is the best way to save. Piggy banks are fine for fun and for stashing change, but they are not an effective long-term Financial Literacy strategy.
- Allowance should be earned, not automatic. Your children can earn money by completing age-appropriate chores.
- Help them spend their money once they’ve saved enough for an item they want. Show kids how to shop around for the best price and enable them to understand that they’re in control of their money.
- Teach kids the value of donating. Giving money away is a profound lesson that teaches children to understand the value of a dollar.
- Teach your kids to assess financial products and make good choices based on educated decisions, such as comparing savings rate of return, and transaction fees offered by different lenders.
RATESDOTCA is the largest impartial rate comparison service for personal finance products in Canada. Founded in May of 2008, their easy-to-use comparison engine provides much-needed transparency to the Canadian financial market and allows visitors to quickly find the best mortgage rates, credit cards, bank accounts, and GIC rates.