Comments on: Savings Accounts for Children

By: Less Debt Fast » Blog Archive » Interesting Links for March 20, 2010

Less Debt Fast » Blog Archive » Interesting Links for March 20, 2010 — Sat, 10 Apr 2010 22:45:58 +0000

[...] Savings Accounts for Children – A good read. [...]

By: Parents Should Teach Kids Finances, Not Just Schools

Parents Should Teach Kids Finances, Not Just Schools — Tue, 06 Apr 2010 09:02:09 +0000

[...] Take your kids to the bank. My grandfather was in his 70s before he first used an ATM, and I don’t think he has ever used a drive-thru window at the bank. He believes in “eye balling” people when doing banking business. So growing up, I knew my way around the bank after tagging along with him. I watched him cash a check for cash (he called this “walking around money”). We rolled coins and deposited them into my grandparent’s account. Of course I loved it, because I always got a lollipop from the teller. Little did I know I was actually learning about how banking works, something I now hope to pass along to my own kids. [...]

By: DFA Weekly Link Rally: Saving Money to Repay Debt in Lump Sums

DFA Weekly Link Rally: Saving Money to Repay Debt in Lump Sums — Sat, 20 Mar 2010 17:28:40 +0000

[...] Frugal Shopping With Google by CouponSherpaPaying Down the Mortgage: Our Family’s Plan by ElleSavings Accounts for Children by Frugal DadHow to Help Teens’ Spending and Consumerism by Craig FordNew Images: What Your [...]

By: Frugal Dad

Frugal Dad — Tue, 16 Mar 2010 12:30:48 +0000

@Jan: True that checks could one day become obselete. However, for now, I believe they are a great tool for explaining the process of balancing a checkbook because they are not an instant deduction from your checking account.

It takes a little practice to get used to deducting “obligated” money outstanding in the form of checks floating around. Trust me; I know adults that don’t get this concept. They get their balance on the ATM slip and assume that’s how much money they have to spend, forgetting the $295 utility check they wrote two days ago.

By: jan

jan — Tue, 16 Mar 2010 12:26:39 +0000

I agre with the savings account. My question comes in check writing. Is there a purpose for this? I teach sixth grade and wonder if my students will ever use a check when they hit college. Do you think this chapter in financial education needs to be rewritten? How could you rewrite it?

By: Jamel Rose

Jamel Rose — Mon, 15 Mar 2010 23:31:34 +0000

Having a savings account at a local bank will show your child two important things: Where money is kept, and What interest is all about.

By: Bill Dwight

Bill Dwight — Mon, 15 Mar 2010 23:14:32 +0000

Like Bob K, I followed an approach like the one described in the book First National Bank of Dad. I like the flexibility, friendliness, and convenience of a “virtual bank” over a real bank and the lack of hidden/”gotcha” fees like the ones mentioned by Lisa. Initially, I kept the “virtual bank” accounts in a spreadsheet, but, being a computer geek, ended up building a web site so the kids could sign in to the bank themselves. Over the years, I built it out into a more elaborate service that others can use. It’s available at FamZoo.com. If that sounds interesting to you, please take the tour from the home page.

To be fair, there are other similar services out there, so google around and compare to see what fits your family. Ours is designed to scale up through the teen years.

You can also combine the two approaches (real world savings/investment accounts virtual family bank) which might be the best of both worlds.

By: Lisa

Lisa — Mon, 15 Mar 2010 19:10:22 +0000

Hi! I feel that savings accounts are pretty useless in this time. My son had some money in savings account & got laid off & didn’t have any activity in his account for 6 months, so they took $10 as an inactivity fee . And at our credit union they did the same thing to us, taking $8 . Sure take a lot more than they deposit as interest.There are fees for everything in these accounts these days. Leave the account alone, they take it. Use the account , they charge you extra.

By: Budgeting in the Fun Stuff

Budgeting in the Fun Stuff — Mon, 15 Mar 2010 19:06:40 +0000

My mom took me to get an official Texas Identification Card when I was 6. She then drove me to their credit union and had me sign up for my own savings account.

She explained how the account worked and how interest worked…within a few years, I was hoarding absolutely every quarter I earned like a squirrel. I had enough saved up by middle school that I bought my own tenor sax for band. It hurt to watch all my money go away, but it sunk in.

By 13, my parents had shown me how to write a check properly and I understood how credit cards work too (don’t make a purchase unless you’d be willing to use cash you already have).

I’m now in my mid-twenties and am very grateful for the parents I have…

Thanks to all the parents teaching their kids the basics!!!

By: Stacey

Stacey — Mon, 15 Mar 2010 16:42:54 +0000

This reminds me of a roommate I had in college. Following a long tearful conversation with her parents on the phone in another state that involved her looking over her checking register. She asked me,”Did you know when you get money out of the ATM, that they take it out of your checking account??”
I’m not sure where she thought the money was coming from, maybe a party fund of sorts!