Train Your Child To Be Financially Smart By Opening Them A Bank Account

It has been put to test and proven that a child who develops good financial skills from a tender age is most likely to be ready for the financial challenges at adulthood than children who do not.

Helping your child understand the basics regarding money such as how to budget, spend, save, and invest will enable them to establish good money habits for their adulthood life.

With COVID-19 forcing parents to spend more time with their children at home as schools have closed, maximize the time to train your child on key financial tactics that will prepare them for their adult life.

One of the ways to train a child to be financially responsible and be one that multiplies on wealth not always dividing and subtracting is contained in a book authored by AYN RAND titled ‘The Virtue of Selfishness’.

Train your child to allocate money according to priorities and the consequences of that so when the time comes for them to be on their own, they will not make the worst decisions always as our life is a reflection of the decisions we make.

“Allocate three jars for this purpose, each labeled according to its task, “Saving,” “Spending” and “Sharing,” says Jayne Pearl, coauthor of Kids, Wealth, and Consequences.

Every time your child receives money, whether for doing chores or from family and friends as presents, divide the money equally among the jars.

Have him or her use the spending jar for small purchases, like toys or stickers. Money in the sharing jar can go to tithe, offering, or donate to a friend’s cause.

Be careful not to create a beggars mentality in your child and make them learn that money is worked for not begged, let them know to dignify ways that are age-appropriate to earn money for example simple chores around the house.

The Jumbo Junior Account by Cooperative Bank offers a variety of benefits to a child such as the joys of savings and ensuring financial security.

Jumbo Junior Account is a transactional account designed for children below the age of 18 years for the safekeeping of money.

Here Are Benefits Your Child Stands To Gain By Opening A Jumbo Junior Account Other Than Financial Knowledge:

Free ele-bank on opening a new account

Free birthday card every anniversary

Discounted bank cheques for fees payment for account holders only

Interest payable at 4 percent

Here Is What You Need To Open For Your Child A Bank Account With Jumbo Junior As You Train Them To Be Financially Smart:

• Parent’s or guardian’s original Identification Card and a copy
• A copy of the birth certificate of the child
• A minimum opening balance of 1,050 shillings
• A Minimum operating balance of 500 shillings
• A copy of the parent/guardian’s KRA PIN

“Money is finite and it’s important to make wise choices because once you spend the money you have, you don’t have more to spend,” states Financial writer, Beth Kobliner.

Money without money management skills does not grow or last. Share more tips on how to train children to be financially smart in the comments section.

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