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newlywedT
LIF Adolescent
Member since 9/11 792 total posts
Name:
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Kids / Money / Bank Account - questions
DD is 8 and DS is 6.
Its about time they started learning about money a bit (or is it too early?), so I was thinking I'd open bank accounts for both of them.
Couple of questions:
1. Do I put the same amount in both? But DD is older, shouldn't she get more?
2. How do I fund it? Lets say they have X dollars from birthday money, do I put the whole thing in or do I say "I'm taking that X dollars and will be funding the account with Y dollars every month" ? Or do I just say "I'm going to fund it with Y dollars every month" (regardless of how much X is)
3. How much control do I let them have over the money? Let them use it for whatever they want since "its their money" ? Or do I get to approve what they buy? Can I say "You get Y dollars every month, BUT you should save 95% since we pay for everything"
4. Do I keep paying for things like toys? Or do I say "now that you have money, you pay for it" ?
5. Or do I just say the bank account is for your future, if you want something we'll continue to buy it.
Just wondering what your opinions are.
Thanks
Message edited 1/3/2023 2:32:55 PM.
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Posted 1/3/23 2:32 PM  |
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nycbuslady
LIF Adult
Member since 9/15 1066 total posts
Name:
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Kids / Money / Bank Account - questions
I think that age is too young to actually have access to the account. I don't think they realize how much money something is when it's just a number on a piece of paper or the computer screen. When they get money for their birthday or Christmas, I'd let them keep a portion ($50 ish?) in cash, preferably in fives, tens, and singles. They can then use that money to buy what they want (with your approval).
I would put the rest of their money in an account for them and then give them access to it as they get older.
My daughter just turned 14. Since everything is electronic, we started an account with a debit card for her. I have access to the savings account and transfer money to the checking account for her periodicly. She can then just use that money (usually around $50). She has the debit card and also connected it to Apple Wallet.
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| Posted 1/3/23 2:48 PM |
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MrsWoods
LIF Adult
Member since 4/12 1461 total posts
Name:
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Kids / Money / Bank Account - questions
Way too young. Wait till middle school
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| Posted 1/3/23 7:38 PM |
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ali120206
2 Boys
Member since 7/06 17792 total posts
Name:
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Kids / Money / Bank Account - questions
We opened savings accounts for the kids when they were babies. We put most money they get for special occasions in there. They do not have access to the money right now but I am saving it for them to use towards college or a car or something big.
They do have their own spending money that they get from relatives for b-days and such that they spend on things they want.
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| Posted 1/3/23 8:18 PM |
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Adri
Joy!
Member since 5/05 3116 total posts
Name:
A
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Re: Kids / Money / Bank Account - questions
Yes, they are too young. DS has had a bank account since he was very young, but it is for the future. We used to deposit there money given for his birthdays, or they had this program where they got money if they read x amount of books during the summer (TD Bank). Also we put there all the loose coins he had on his piggy bank.
When they are older they will learn about money because they earn it when doing their chores or other things. DS is older though, he is 17 now. He had his first job last summer and it gave him a real understanding about money and to pay for the things he really wants. For example, we pay for his clothes of course; but if he wants a brand t-shirt or something special, he knows he has to pay for that.
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| Posted 1/3/23 9:12 PM |
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NervousNell
Just another chapter in life..
Member since 11/09 54921 total posts
Name:
..being a mommy and being a wife!
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Re: Kids / Money / Bank Account - questions
They are too young to understand money or have access to their savings.
You should start a savings account for them, but they shouldn't have access to it.
At 12 we got my DD a greenlight card. If she does chores around the house we put $10 on it. If her grandfather gives her $20 when he sees her she will ask us to put it in there for her.
Then if she goes to Dunkin Donuts after school or wants to order something online, she uses the card.
It helps her understand how money works, and how you have to earn money if you want to buy something.
But even at 12, she doesn't totally get it and I wouldn't give her access to her savings account- that is for when she's older
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| Posted 1/4/23 8:31 AM |
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VickiC
Rocking the party
Member since 5/05 4937 total posts
Name:
Vicki
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Kids / Money / Bank Account - questions
The kids have had bank accounts since they are babies. Any money they get goes into that account and then gets transferred into their 529 accounts.
Now that they are older, some people give them gift cards too. They know they are allowed to spend the GCs on whatever they want. Most times if they get cash, they know I put it right in the bank for them. I'm trying to teach them to save half and spend half if they get extra money to play with.
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| Posted 1/4/23 9:34 AM |
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RainyDay
LIF Adult
Member since 6/15 3990 total posts
Name:
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Kids / Money / Bank Account - questions
For thos ewith younger kids.....are the accounts in the child's name? I have a separate bank account under my name that we put money into monthly for DD. I am just not sure if I should keep it under my name or put it in hers. Shes 6.
Message edited 1/4/2023 10:00:47 AM.
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| Posted 1/4/23 9:45 AM |
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JandJ1224
Member since 6/06 5911 total posts
Name:
Jannette
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Re: Kids / Money / Bank Account - questions
We set up savings accounts when they were younger. My girls are middle and high school aged now. They do not have access to spend the money-its savings. As they got older I gave them the option when they get gift money if they'd like to put it in their account or keep for spending. I usually recommend a portion for both. I go over how much they have with them regularly which I thinks helps to motivate to save to see number going up.
My older daughter started working this year. She has her own checking account now with a debit card and she has full control of what she does with that money. For the holidays she deposited cash she received.
I've always been very open about communicating about finances with my kids. I hope that I've instilled importance of saving, giving thought before purchasing something etc. Since they were little they'd have a budget when shopping and have to decide what to buy within the budget.
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| Posted 1/4/23 9:50 AM |
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LuckyStar
LIF Adult
Member since 7/14 7274 total posts
Name:
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Re: Kids / Money / Bank Account - questions
Posted by NervousNell
They are too young to understand money or have access to their savings.
You should start a savings account for them, but they shouldn't have access to it.
At 12 we got my DD a greenlight card. If she does chores around the house we put $10 on it. If her grandfather gives her $20 when he sees her she will ask us to put it in there for her.
Then if she goes to Dunkin Donuts after school or wants to order something online, she uses the card.
It helps her understand how money works, and how you have to earn money if you want to buy something.
But even at 12, she doesn't totally get it and I wouldn't give her access to her savings account- that is for when she's older
This is a good idea and something I’ll keep in mind as my DD gets older.
Unpopular opinion, my DD doesn’t have her own bank account. I just don’t see the point. She’s never gotten enough money gifted to her that would warrant an account. Once she’s old enough to have a part time job and she’s earning money, then sure. But as far as saving for the future, we do that. We’ll pay for her college and living expenses until she’s employed (within reason- she can’t just decide not to work because she thinks we’ll bankroll her).
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| Posted 1/4/23 10:42 AM |
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ali120206
2 Boys
Member since 7/06 17792 total posts
Name:
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Re: Kids / Money / Bank Account - questions
Posted by RainyDay
For thos ewith younger kids.....are the accounts in the child's name? I have a separate bank account under my name that we put money into monthly for DD. I am just not sure if I should keep it under my name or put it in hers. Shes 6.
My kids accounts are in their name and mine. I don't think there is really much difference if you have a separate account for her.
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| Posted 1/4/23 10:59 AM |
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Pomegranate5
LIF Adult
Member since 2/11 4798 total posts
Name:
Pomegranate5
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Re: Kids / Money / Bank Account - questions
I don't think there is such as thing as too young to start learning about money management.
Our kids have had bank accounts since they were about your kids' ages. They are linked to our savings account. They have also had "chores" since that age which earned them a small allowance which is transferred into their accounts each week automatically.
The account we opened allows you to split their money into categories and that restricts how much of it they can spend. All of their allowance goes into the spending category, while gifts etc go into the savings category - they can't touch that but they can see it so they know how much they have.
For our kids, it's been great to teach them the value of money in a very controlled and carefully supervised setting while giving them the sense of some freedom and control.
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| Posted 1/4/23 12:59 PM |
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lpg21
LIF Infant
Member since 9/21 342 total posts
Name:
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Re: Kids / Money / Bank Account - questions
We opened up custodial accounts when the kids were babies. We put in any money we get in there from birthdays, baptism, holidays, etc. My oldest son is disabled so when he was around 6 years old, we closed his custodial account and opened a separate one in my DH's name only because he cannot have any assets for government benefits. We just put any money he gets in there now.
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| Posted 1/4/23 2:57 PM |
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newlywedT
LIF Adolescent
Member since 9/11 792 total posts
Name:
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Kids / Money / Bank Account - questions
Thanks for the answers everyone
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| Posted 1/4/23 11:39 PM |
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Re: Kids / Money / Bank Account - questions
My kids are adults and I still pay for things so the whole "you have money so buy your own toys now" makes no sense to me.
You open accounts which will be under guardianship of you or your wife. Once they turn 18, it will turn into an adult account which they will have full access of.
Teach them balance, save some, spend some, pay bills (when they get them).
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| Posted 1/5/23 8:15 AM |
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VickiC
Rocking the party
Member since 5/05 4937 total posts
Name:
Vicki
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Re: Kids / Money / Bank Account - questions
Posted by windyweather21
My kids are adults and I still pay for things so the whole "you have money so buy your own toys now" makes no sense to me.
My kids are young at 12 and 6, so I obviously pay for stuff for them. But if my son wants a new case for his phone, but the case he has is perfectly fine, I'm not buying it. He can spend hi GC money on it if he wants. It's stuff like that.
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| Posted 1/5/23 9:20 AM |
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VickiC
Rocking the party
Member since 5/05 4937 total posts
Name:
Vicki
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Re: Kids / Money / Bank Account - questions
Posted by RainyDay
For thos ewith younger kids.....are the accounts in the child's name? I have a separate bank account under my name that we put money into monthly for DD. I am just not sure if I should keep it under my name or put it in hers. Shes 6.
Both kids have custodial accounts. My name is on it with them. So when they are older, they can put money in as well as me. My name will remain on the account until they get married and put their partner's name on the account. It's always good to have two names on the account for any reason.
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| Posted 1/5/23 9:22 AM |
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Re: Kids / Money / Bank Account - questions
Posted by VickiC
Posted by windyweather21
My kids are adults and I still pay for things so the whole "you have money so buy your own toys now" makes no sense to me.
My kids are young at 12 and 6, so I obviously pay for stuff for them. But if my son wants a new case for his phone, but the case he has is perfectly fine, I'm not buying it. He can spend hi GC money on it if he wants. It's stuff like that.
Yup that is totally understood.
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| Posted 1/5/23 9:29 AM |
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Re: Kids / Money / Bank Account - questions
Posted by VickiC
Posted by RainyDay
For thos ewith younger kids.....are the accounts in the child's name? I have a separate bank account under my name that we put money into monthly for DD. I am just not sure if I should keep it under my name or put it in hers. Shes 6.
Both kids have custodial accounts. My name is on it with them. So when they are older, they can put money in as well as me. My name will remain on the account until they get married and put their partner's name on the account. It's always good to have two names on the account for any reason.
IME your name comes off when they are 18. My bank automatically does it. It becomes an adult account.
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| Posted 1/5/23 9:30 AM |
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VickiC
Rocking the party
Member since 5/05 4937 total posts
Name:
Vicki
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Re: Kids / Money / Bank Account - questions
Posted by windyweather21
Posted by VickiC
Posted by RainyDay
For thos ewith younger kids.....are the accounts in the child's name? I have a separate bank account under my name that we put money into monthly for DD. I am just not sure if I should keep it under my name or put it in hers. Shes 6.
Both kids have custodial accounts. My name is on it with them. So when they are older, they can put money in as well as me. My name will remain on the account until they get married and put their partner's name on the account. It's always good to have two names on the account for any reason.
IME your name comes off when they are 18. My bank automatically does it. It becomes an adult account.
Well, if that will happens, I'm guessing we will get notification of such. No matter what, one of our names will remain on their account just so it's there if, God forbid, something happens and someone needs to get into the account.
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| Posted 1/5/23 5:21 PM |
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Re: Kids / Money / Bank Account - questions
Posted by VickiC
Posted by windyweather21
Posted by VickiC
Posted by RainyDay
For thos ewith younger kids.....are the accounts in the child's name? I have a separate bank account under my name that we put money into monthly for DD. I am just not sure if I should keep it under my name or put it in hers. Shes 6.
Both kids have custodial accounts. My name is on it with them. So when they are older, they can put money in as well as me. My name will remain on the account until they get married and put their partner's name on the account. It's always good to have two names on the account for any reason.
IME your name comes off when they are 18. My bank automatically does it. It becomes an adult account.
Well, if that will happens, I'm guessing we will get notification of such. No matter what, one of our names will remain on their account just so it's there if, God forbid, something happens and someone needs to get into the account.
Absolutely. I don't think there is a choice under 18 to do it anyway.
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| Posted 1/6/23 8:20 AM |
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aliwnec10
mom of 3 boys
Member since 4/06 11426 total posts
Name:
Ali
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Re: Kids / Money / Bank Account - questions
Posted by nycbuslady
I think that age is too young to actually have access to the account. I don't think they realize how much money something is when it's just a number on a piece of paper or the computer screen. When they get money for their birthday or Christmas, I'd let them keep a portion ($50 ish?) in cash, preferably in fives, tens, and singles. They can then use that money to buy what they want (with your approval).
I would put the rest of their money in an account for them and then give them access to it as they get older.
My daughter just turned 14. Since everything is electronic, we started an account with a debit card for her. I have access to the savings account and transfer money to the checking account for her periodicly. She can then just use that money (usually around $50). She has the debit card and also connected it to Apple Wallet.
same here. At 14 we opened his own Chase high school account. It is linked to mine. He got a debit card and I see everything, can lock his card, can transfer funds, etc etc. The most we keep in it is $100. I can transfer money from my account to his or transfer money from his savings account to it.
He worked this past summer so all of that money went into his savings. He rarely spent any of it so when he wanted a pair of $250 shoes, we talked about it for a few weeks (need vs want) and ultimately we told him it was his choice. He decided to get the shoes (again he spent none of the money he worked all summer for) so that was fine with us. Now that it is his money per say, he does think a bit more as to whether he really wants it or not. If he wants a car some day, his spending now will effect that as to how nice of a car he gets. Somewhat nice or a beater. 
ETA: When they were born, we started 529's for them all and also opened a savings account for each as well.
Message edited 1/8/2023 8:45:45 AM.
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| Posted 1/8/23 8:39 AM |
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Re: Kids / Money / Bank Account - questions
Posted by aliwnec10
Posted by nycbuslady
I think that age is too young to actually have access to the account. I don't think they realize how much money something is when it's just a number on a piece of paper or the computer screen. When they get money for their birthday or Christmas, I'd let them keep a portion ($50 ish?) in cash, preferably in fives, tens, and singles. They can then use that money to buy what they want (with your approval).
I would put the rest of their money in an account for them and then give them access to it as they get older.
My daughter just turned 14. Since everything is electronic, we started an account with a debit card for her. I have access to the savings account and transfer money to the checking account for her periodicly. She can then just use that money (usually around $50). She has the debit card and also connected it to Apple Wallet.
same here. At 14 we opened his own Chase high school account. It is linked to mine. He got a debit card and I see everything, can lock his card, can transfer funds, etc etc. The most we keep in it is $100. I can transfer money from my account to his or transfer money from his savings account to it.
He worked this past summer so all of that money went into his savings. He rarely spent any of it so when he wanted a pair of $250 shoes, we talked about it for a few weeks (need vs want) and ultimately we told him it was his choice. He decided to get the shoes (again he spent none of the money he worked all summer for) so that was fine with us. Now that it is his money per say, he does think a bit more as to whether he really wants it or not. If he wants a car some day, his spending now will effect that as to how nice of a car he gets. Somewhat nice or a beater.
ETA: When they were born, we started 529's for them all and also opened a savings account for each as well.
My advice is help with the car if you can as you don’t want your child having a beater car. It will cost more money in the end and more stress if they get stuck all the time.
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| Posted 1/8/23 8:51 AM |
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mommy2be716
LIF Adult
Member since 1/16 2921 total posts
Name:
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Kids / Money / Bank Account - questions
definitely think they're too young, and also feel like if you're going to work on saving money, i wouldn't put in a reg savings account. there's no interest on that.
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| Posted 1/9/23 8:15 AM |
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