For those still on the fence about the benefits of saving, here are five reasons to open a children’s savings account today:
Teaching kids to save teaches self control.
Choosing to save instead of spend, is an exercise in self control. The famous 1927 Stanford Marshmallow Experiment showed that kids with self control are psychologically better adjusted, more dependable and do better in school.
Kids who save are more likely to go to college.
Research conducted by Washington University’s Center for Social Development found that children who have a savings account in their name are seven times more likely to attend college than similar youth without an account.
Children savers have a better outlook on life.
Children with a savings account have lower stress and a greater sense of hope for the future, according to the SEED Initiative.
Savers are more financially literate.
Students with a bank account tend to be more financially literate than those without an account, according to national financial education survey compiled by the Jump$tart Coalition® for Personal Financial Literacy.
Children’s savings accounts are free and fun.
Most banks offer no-fee, no-minimum balance “custodial accounts” for children. Many banks provide incentives for account openings and deposits, such as an increased interest rates or matching funds. Some banks give gifts, such as stuffed animals, while others have a kid-sized teller window in the branch.
Parents interested in opening a children’s savings account can look for a bank in their area on the Teach Children to Save Honor Roll at www.teachchildrentosave.com. In addition, some sixty banks are promoting savings accounts through incentives in support of a new industry initiative to open 15,000 children’s savings accounts in 2011 known as the Race to Save. Race to Save Banks.
Editor-In-Chief, Stephanie Penn-Danforth -- Daily Venus Diva.
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