Should I Open a Bank Account for Baby?

Should I Open a Bank Account for Baby?

Your baby doesn’t carry a wallet, so it makes sense for him to have access to a bank account. There isn’t much space for loose change in a diaper, after all. It may, however, seem like a bit of a hassle to set up a bank account for a baby who is very unlikely to be earning an income anytime soon. If you’re wondering whether you should open a bank account for baby, here are a few reasons why you should:

  1. The money will gather interest

You could use a traditional piggy bank to teach your child about the value of money, but those pennies won’t be working overtime. Your child won’t receive any interest on money saved at home, but he may do if you choose a good bank account for his savings.

  1. Your baby will acquire money

He’s not quite ready to set up his own business just yet, but that doesn’t mean he’s going to be penniless for the coming years. In fact, each time he celebrates a birthday or Christmas, he’s likely to end up with a little stash of money gifted to him by friends and family. When he’s old enough, he’ll probably want to march straight down to the toy store and spend every penny of it on baseball trading cards, but right now, you get to decide where the money goes. It makes sense to put this money somewhere safe for your baby when he’s a little older (maybe when he’s passed the trading card phase, even).

  1. Something for the future

As parents, we can’t predict what the future will hold but we can be pretty damn sure it’s going to be expensive. Whether your child grows up with dreams of travelling the world, attending an expensive college or having a big white wedding, the future will be pricey. Help your child save for the future now by opening a baby bank account. The money might just pay for those flights to Thailand in about eighteen years time.

  1. Teach a valuable lesson

You know what’s valuable? Money. Know what else is valuable? Learning the value of money at a young age. You can help your child to understand the importance of having a savings account by setting one up in early life. If your child grows up with access to a savings account, he’ll be used to storing money away for a later date instead of blowing everything all at once. So many people struggle with managing their money these days, opening a bank account for baby could help your child to understand the importance of budgeting and saving early on.

Have you opened a bank account for your baby?

Written by Fiona (@Fiona_Peacock), mother, writer and lover of all things baby related.

This information is not intended to replace the advice of a trained medical doctor. Health & Parenting Ltd disclaims any liability for the decisions you make based on this information, which is provided to you on a general information basis only and not as a substitute for personalized medical advice. All contents copyright © Health & Parenting Ltd 2016. All rights reserved.