Across the country, families are tightening their belts as the cost of living crisis continues.
Many households are trying to find ways to to save money or reduce their expenses. Now the financial experts at money.co.uk have put together some tips on how Parents can teach children the value of money from an early age.
From pocket money apps to first bank accounts, young people can learn the importance of saving money in many ways. Here, Salman Haqqi, personal finance expert at money.co.ukgives you his tips for opening your child’s first bank account and pocket money apps.
Why is it important to talk about the best bank accounts for children right now?
“Opening a bank account for a child can help them learn how to manage their money. A bank account can give children a way to access their money when and where they are. By opening a bank account for a child, you can:
- Encourage them to save their birthday and Christmas money
- Teach them to check their balance
- Give them a debit card so they can spend their money in stores or online
How to choose the right bank account for your child
“Children’s bank accounts have many similarities to standard checking accounts, but are designed for account holders under the age of 16 to 18. They usually come with certain restrictions on how children can use them – they do not have overdraft facilities, for example.
“To help you choose the right bank account for your child, start by choosing an account that has the features you need, for example, the ability to withdraw money if needed. Don’t forget to check the limits age and balance restrictions for each account as well.
“To find the best bank account for your child, you can follow these simple steps:
- Compare and review available bank accounts
- Note accounts that offer the features you need, such as internet banking or a debit card
- If multiple accounts fit the bill, see what additional benefits they offer, then request the best account for you
How old must a child be to open a bank account?
“In most cases, a child must be at least 11 years old to open their own bank account. Some children’s accounts have a higher minimum age, such as 16.
“Usually a parent will need to be present to open a bank account for a child, unless that child is 16 or older. Some banks offer one account for children and another for teenagers. Some children’s accounts expire once you reach a certain age, usually 18 or 19. The bank usually upgrades the account to a standard adult bank account at this time.
Why is it important to talk about pocket money apps?
“For many families today, the idea of handing out pocket money to put in a piggy bank has become relatively outdated. However, pocket money can be a great way to teach kids about money management. money and responsibility. These days, many parents have turned to online pocket money apps to pay their kids, while keeping track of their spending habits.”
Are pocket money apps safe and how do they work?
“A pocket money app is a money management tool that teaches kids how to earn, save, and spend money wisely. Intuitive layouts, plus security features robust tools allow parents to securely manage their children’s spending money online.While you can set spending limits, a huge benefit for parents is that you can also track your child’s spending in pocket money apps, often receiving real-time notifications.”
How can pocket money apps help teach kids about money?
“Pocket money apps are used by both parents and children to transfer savings and create pocket money tasks. However, they are also used to teach children money management through to in-app quizzes, videos and games.”
At what age should you start giving pocket money?
“There is no right or wrong age for giving pocket money; decisions will depend on your personal circumstances. Some parents give a small allowance to their children from the age of four or five, to demonstrate the benefits of saving, but this is not always the case Whenever you start, it is important that your child understands the basic truths about money, including the idea that “money does not grow on trees”.
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