This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

'Never Too Early' to Open Your Kid a Bank Account

NEW YORK (BankingMyWay) -- Moms and dads are getting serious about teaching their kids about money, and earlier than ever.

BMO Harris Bank says 74% of U.S. parents either have already cracked open a bank account for their children or plan to.

What's striking from the study is that 44% of those parents (focused on Illinois residents because BMO Harris Bank is based in Chicago) are opening those savings accounts for their kids before they turn 5. That's earlier than most studies indicate, and it's a significant and positive reminder that parents are taking the financial side of their child-raising duties very seriously.

"The good news is that many parents have passed that first step -- recognizing the importance of helping their children save, and going into a bank to get started," says Alex Dousmanis-Curtis, head of retail banking at BMO Harris Bank.

As for starting a bank account for a 3-year-old, Dousmanis-Curtis thinks it's a good idea. "It's never too early to provide your children with the financial education that they will carry into their later years, whether it's giving them a small allowance, engaging them in basic money decisions or opening up a savings accounts," she says.

To help with those early banking efforts, BMO Harris offers tips for parents looking to get that early start with their children:

Get a head start. "Seed the ground" by allowing your son or daughter to have a coin or a dollar bill or two. That teaches them the importance of money -- and saving it. "As soon as children start to collect a few coins and understand the value of money, open a savings account for them and explain how interest works," the bank says.

Make savings goal oriented. Tie your bank savings program into some item your child wants, such as a new bike or a dollhouse. That makes it easier for kids to understand the value of money and why it's so important to save it.

Blend "gift money" into savings. Any time your son or daughter gets a cash or check gift, split the difference and pop half of it in the bank. The other half can be used on things kids want toys, games and popcorn at the movies. By showing kids there needs to be a balance between spending and saving, you're giving them a great financial life lesson.

As your child grows older, start teaching them their savings can be used in other important life arenas, such as charitable giving and investing in the stock market.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs