Do your kids have bank accounts and if so how do they manage them?

I wanted to open accounts at Bethpage Federal Credit Union for the kids. How do you manage banking with your kids if they have accounts?

Re: Do your kids have bank accounts and if so how do they manage them?

Our kids bank at National Bank of Daddy.

We tried traditional kids savings account but we found that it wasn’t giving us what we were really looking for. We wanted them to be able to drain the account repeatedly if that is what they wanted – we felt it was the best way to teach them the consequences of spending.

We created ledgers and checks and keep their ‘spending’ money at home and in the safe. They get a direct deposit of any kind of allowance or special monies we want to give them. They have the option to deposit the monies that they get on their birthdays or holidays.

They can withdraw money at any time – but before they do, they must check the ledger to see how much is available and then do the math to find out how much WILL be available after the withdrawal. They are 100% responsible for any cash on hand after it is taken out – so if they lose it, it’s gone.

We have found that it’s given them a sense of responsibility with their money. We’ve also been able to determine that Robbie inherited MY tendencies (a dollar burns a hole in his pocket), while Noah is more like his father (he rarely spends his money and loves to see his ledger balance go up).

We decided that on their 13th birthdays we will be moving their money to a regular bank if they would like.

Re: Do your kids have bank accounts and if so how do they manage them?

I love what you do Jeannie!

Re: Do your kids have bank accounts and if so how do they manage them?

They have bank accounts... we go every few months and do the change machine and deposit that money into the account. I'm a meanie... but they aren't allowed to touch that money. That is all birthday/gift/communion/special occasion money ( plus the change) and we try to teach them it is important to save for the future... not to touch savings for silly things like video games, toys...
But they also have "piggy banks" in their room... we don't really do a set allowance but if they earn money for great grades/report card, or helping out above and beyond the norm they can put that money in their piggy banks.

That is the spending money they are allowed to touch but my kids are cheap like me... so far they never want to touch it .. they enjoy watching it grow. If they really want something they try to wait for birthday or Christmas to ask for it. They have also gotten smart and ask relatives for gift cards to their favorite stores for holidays. Then they ration the gift cards out through the year to make them last as long as possible.

I am sure as we hit the teen years all of this will change but they still won't be able to touch their bank account money. DH and I have decided we will open another checking account for them not linked to the savings account. We will deposit a weekly allowance in it and they can use a debit card to pay for things. They will be responsible to make sure they don't overspend what is in the account.

Re: Do your kids have bank accounts and if so how do they manage them?

I am the joint account holder of ll of the kids' accounts. I put in any money that they get for holidays/birthdays and when it reaches the next $1000 mark, it gets put into another CD.

They don't get an allowance, but we have a rewards chart that they can earn toys or special days, etc

Re: Do your kids have bank accounts and if so how do they manage them?

Re: Do your kids have bank accounts and if so how do they manage them?

Thank you for all the responses.