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The gift that keeps on giving: Savings accounts

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savings-accounts-gift-that-keeps-giving

We live in the ‘lucky country’ and that’s certainly true for lots of Australians out there. We’re lucky enough to have great education and the opportunity to provide for our family. In the lead up to Christmas, we’re all busy meeting requests for Christmas gifts. But have you thought about a Christmas gift that will keep giving?

Kids enjoy a seemingly endless selection of toys, games and electronic devices. But this Christmas, rather than buying more toys, why not give your kids a gift that will benefit them for years to come. Consider setting them up with a Qudos Bank Youth Membership Savings Account.

A Christmas gift with a difference

Teaching kids about money is more important than ever. We’re moving towards a cashless society but do your kids actually understand the value of digital money? Kids who acquire financial literacy skills early in life may be at a significant advantage over their peers.

An effective way to consider teaching your kids about money management is to set up their own bank account and pay their pocket money into it.

Your child will begin learning terminology like deposit, balance, withdrawal and interest.

They’ll quickly become familiar with the concept of saving.

And they’ll begin to understand that even if they don’t have physical cash in their hands, the money in their account is still real money.

By teaching your child to save their pocket money to eventually buy something they want, you’ll likely help them develop financial discipline and goal-setting skills from an early age. They’ll also become familiar with understanding the real-world applications of their maths lessons.

How to choose the right savings account for your kids

Here are some key points to consider when selecting the perfect savings account for your kids:

  • Interest Rates - interest rates for kids’ savings accounts are usually low, but are you getting the best interest rate possible for your child’s savings?
  • Savings vs Transaction Accounts - help your kids understand the difference between savings and transactions. Transaction accounts usually have lower interest rates but flexibility around regular withdrawals. Savings accounts often have higher interest rates but come with access and withdrawal restrictions.
  • Fees and Charges - while many children’s accounts don’t have monthly fees, they may have monthly limits on withdrawals. If this limit is exceeded, then fees may be incurred.

Parents apply to open a Qudos Bank Youth Membership Account on behalf of a child or teen under the age of 18 (with their original Membership application and birth certificate). Grandparents and other relatives can set up an account with written consent from the parents. With $0 account keeping fees, you’ll likely help teach them about money management, while setting them up with a future nest-egg. And what better Christmas present could you think of than the gift of future financial security.

To discuss how you can help set your child up for a secure financial future, call us on 1300 747 747 and speak with one of our banking specialists today.

 

  Disclaimer

Qudos Mutual Limited trading as Qudos Bank ABN 53 087 650 557 AFSL/Australian Credit Licence 238 305. The information in this article is of a general nature and has been prepared without considering your objectives, financial situation or needs. Before acting on the information, consider its appropriateness to your circumstances.

 

Article published December 2018