Reintroducing Child Savings

There has been a great emphasis on setting up certain programs for children to save money. In fact the emphasis has been on teaching your children how to save money, over how to spend it on what they want. Parents are called to encourage their children to save money as well as to open a savings account in their children’s names. The idea is that if the child has a savings account they will be able to put some of their money into the account and their parents can add to that sum as they are trying to create a college fund or other funds. Furthermore the emphasis on children’s savings accounts has been that if a child has a better understanding at a very early age of how to save money they will be more financially responsible as an adult. The financial advisers at MDM Associates have been looking at these research facts.

It seems that children between five and eighteen in the UK are receiving about 5469 pounds in pocket money. What analysts are saying now is that if the child had a banking account the children would learn how to save the money and even help that money grow a little bit. In other words the education from parents to their children is very important when it comes to the responsibility of money. The fact that the savings accounts would then add interest is only one benefit.

Lisanna Mealing is part of MDM, who believes that the first thing parents must do is to actually open the account to help their children. The bank account should be opened at the earliest possible age. It also means that presents from others that are monetary in value can be saved in the bank account as the child ages. It seems that the rising costs of raising a child are currently around 186,000 pounds when you count from birth to twenty one. This means that the children of course have a financial impact on their parents.

Even though there are impacts on the parents, if they were taught how to save money as children they would be able to better afford their adult life. It is really a cycle that they are talking about when you consider savings for children. In recent years children have not been given savings accounts or taught how to save money. Instead because the parents could afford it they often allowed children to have more than they needed. This is of course a balancing act. One must teach their children how to save so that the family will continue on in prosperity and just one link where this is forgotten can have a significant impact. This is why many of the banks, analysts, and other companies have been trying to encourage adults with young children today to start a bank account. The child doesn’t need to know the entire amount of the savings, but they can keep record of what they have placed in the account to learn responsibility.

Back To January 2008 Financial News
Purchasing with Credit Cards
Traps with Credit Cards
Understanding Credit Scoring
What Is A Credit Reference Agency
Testing Your Debt
10 Ways To Save Money
Benefits of Savings
How To Save of Invest Your Money
Individual Savings Accounts
Sainsbury’s Bank Internet Savings Account
Product Types For Savings
Saving with Child Trust Funds
Savings and Investments Advice
Trouble Ahead with Free Banking
Warning: Savings Rate Change
What Makes Consistent Savings Account?
Credit Building Solutions
Britain Needs to Protect Itself
Free Banking or Unfair Bank Charges
Reintroducing Child Savings
How To Get The Most From Reward Credit Cards - Part 1
How To Get The Most From Reward Credit Cards - Part 2
UK Economy Growth
UK Rate Cut
US Recession and Britain