How to Set Your Children Up for Financial Success

As a parent, you might want to teach your children smart financial habits, but it can be challenging to know where to begin. When is the appropriate time to open a savings account for your child? When should you give them access to a debit or credit card? At AbbyBank, we are committed to providing parents with the tools and resources they need to help their children develop strong financial habits that will benefit them in the future. Here are some helpful tips! 
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Give Your Child a Savings Account Early 

Many parents open savings accounts for their children soon after they are born as a way to start saving for their child’s future. Once you feel your child is old enough to understand the concept of saving, we recommend involving yourself in the savings process by giving them their own savings account. Encourage and help your child make regular deposits to their account, using birthday money, allowances or other monetary gifts they receive. Most importantly, you will retain full access to the account and no withdrawals can be made without your permission.  

Bank Accounts for Teens 

As your child grows, their relationship with money evolves. If you have a teenager, they will have different needs for their banking account and will require some more financial independence. We recommend teens still maintain a savings account, but that parents also help their child by opening a checking account. A checking account presents a new set of responsibilities for your teenager, including: 
  • Making regular deposits 
  • Using a debit and/or ATM card 
  • Being aware of their account balance to avoid overdrafts 
  • Learn to budget and prioritize expenses
At AbbyBank, we understand the importance of helping your child develop sound financial habits, which is why we offer a variety of accounts to suit their needs. We have the Bright Future Checking account and a Junior Savings account specifically designed for kids and teens. Please contact us to learn more about which accounts are the best fit for your child to establish long-term financial success.