Family | Why you should set up a savings account for your child

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As we become more of a cashless society, even the cherished piggy bank has become a dying habit. But there are other ways you can teach your child how to save cash.

Without even realising, you pass on your own spending habits to your children. So when they see you buying unnecessary items and impulse purchasing, they will follow suit.

Instead of making the focus on your own spending habits, you could use the opportunity to teach your child about money. The first step is to set up a savings account for your child. 

One thing you can do is to open a joint account with your child. Online banking makes it easier for them to watch their money grow without having it get lost around the house.

Most of the banks offer junior savings accounts, or there is a choice of your local credit union or post office. You can often apply online for such accounts or going to the branch may add to the sense of the occasion. When opening such accounts, under 16s need a parent or guardian to sign the application form to receive a cash card. You will also need ID, proof of address and your PPS number. There are some small fees attached to such accounts so shop around before you sign up.

Some banks, such as Ulster Bank, offer printable savings charts or money counting games – all of which get your child into the mode of saving. Unfortunately, the interest returns are not great on such accounts so do not be expecting too much!

If you want to use their account as a means for you to save money for their future education, set up a standing order from your own account to theirs.

Once they see the cash accumulating, they may have the urge to just spend and spend. In some occasions, it may be a worthwhile exercise to allow them to spend and see the impact it has on their accounts.