Since learning to save early in life is important, many financial institutions offer youth accounts for children as young as six months old. For the young savers, learning the concept of money and saving is paramount.
Typically a mascot is associated with a child savings account and kids are encouraged to save by earning tokens, toys or points every time they make a deposit into their account.
While most youth accounts offer some interest, it’s typically either the same as a standard adult account or lower. Instead youth accounts are dedicated more to teaching educational concepts. Parents are almost always linked to the child’s account in order to maintain control over the child’s saving (and spending) habits.
Your child has filled the piggy bank and needs a bigger storage. Are you starting to consider a savings account for your child in which the money can earn interest and grow with your child?
Elementary Youth Account
Youth savings accounts are also typically broken down by age bracket. Preschool to elementary school children are offered a savings account that offers toy piggy banks or tangible “fun” incentives for making deposits. Sometimes elementary savings programs provide the kids with educational coloring contests and even kid fun days at the bank to further expose the child to the concept of saving money.
Teen Youth Account
Middle school to high school youth accounts may still offer incentives for saving money but it’s typically items such as iTunes or fast food restaurant gift cards. Educational seminars and an introduction to loans is usually presented to teens, as many will consider buying their first car. In addition to loans, some teen savings programs may introduce checking accounts geared to teens, especially those who have jobs. Direct deposit and an ATM card may also be associated with the account.
This segment may also have online account access as well as a special educational portal geared toward their specific savings needs.
College Youth Account
Even college student savings accounts may fall under the youth account category as the financial institution prepares the student for saving for important purchases such as a home or a car. Like the teen account, the college youth account is similar but may also introduce the concept of adult savings accounts such as money markets and CDs. Incentives for this group are a little more mature and may be presented in the form of low or no fees and a higher interest rate.