YOUTH'S BANK ACCOUNTS: MAXIMIZING THEIR POTENTIAL

Financial know-how is an important lesson in one's life. The earlier we start, the better it pays off. To teach our children about money management lessons from a tender age, we must demonstrate appropriate behavior regarding money matters. We should teach proper financial behavior to our children from the very beginning. And as time passes, they will know how to manage their finances effectively.

Instead of putting the money in a piggy bank, let your child use an opportunity to save the funds in an actual bank. You can establish a short-term goal, like buying a gaming console or a mountain bike. Also, you can plan a long-term goal with them, like saving up for college or a foreign tour. Tell them to save their money to reach the intended target. Sit with your children and discuss ways to add savings to the Childrens Bank Accounts. Your child can conveniently pour in their share of the money they get for their birthdays, summer jobs, allowances, or daily chores.

Get Your Child Accustomed To Using Banking Cards 

Some banks and financial organizations like Muvin offer savings accounts for children and teenagers. Depending on state statutes and the policies of the said institution, you can quickly get a children's debit card for your teenager. The accounts are usually jointly owned by the child and their parent or legal guardian. The parent acts as a custodian. Teen accounts typically include Debit Card for Teens that allow the account holder to make transactions. 

When a child or a teen uses their debit card, the funds are debited from the savings account balance. Whenever you transfer funds to your child's accounts, let them view this in real-time. This will develop an understanding of how it all works. Parents should teach the saving concept early to help them learn more about money and finance. This way, they will be ready to earn, save, and develop financial literacy when they reach maturity.

Banking At An Early Age Helps Understand The Value Of Saving

Help your child master the art of saving funds. The child will develop the habit of saving money from allowance, chores, or part-time jobs. For example, if your child wants to buy a new video game or save money for summer excursions, tell them they could use their savings account for these specific goals. 

Having their own savings account can make them responsible for how to use money. Having an actual savings account will make them feel special and grown-up. Teens should know about handling finance and develop better habits at a young age. 

This modern era is not the time to be a helicopter parent, but parents should keep an open eye on their child's financial habits. Ask them about the money's whereabouts if the balance is less than planned. Speak to them about money management and ask them to refrain from impulse purchases. The parents' sole duty is to teach them every financial lesson today, which will equip them with money management skills for a lifetime.

Teaching Credit Facility To Your Child 

There are times in life when people borrow money but cannot repay it on time due to poor financial management. When your children grow up, it's important to teach them about credit so they can make informed financial decisions. Whenever a young child runs out of pocket money, you can act as a bank for them by lending them more money and making them repay you with interest or a portion of their allowance.

It is important to outline and enforce the consequences of late payments. This will enhance the impact of your financial literacy lessons. Using child-friendly online banks like Muvin, you can help older children learn how to manage their borrowings with a specially designed credit card for teens.

Muvin- Your Finacial Mentor 

Muvin, unlike other neo-bank mobile apps, makes digital transactions easier. Muvin aspires to improve financial literacy among youths and teenagers. Talk to your child about their overall banking needs as they become adults. Parents should teach children about money and a children's savings account could be the ideal tool. These online banks impart positive money habits from an early age, including the importance of saving for the future and the power of interest.