We have spent our childhood with our parents urging us to turn off the water tap when brushing our teeth, to turn off the lights in the rooms when leaving them, to leave nothing on the plate – it was money, in addition to the food that we should not waste- and manage with a banker’s zeal a brief weekly pay.
Mythical children’s piggy banks
In addition, we all remember those mythical children’s piggy banks where, from time to time, we threw some coins through the slot in the hope of buying the bike, a toy or any other whim. The truth is that these customs began to take root in us by showing us the path of saving by which we should enter our adult life.
However, now we are the parents and we are responsible for instilling this philosophy to our children
In addition, with maturity we are aware that learning to manage domestic finances is vital to the health of our economy and is a gift that very few possess. Of course, we all want our offspring, in addition to English, to perfectly master the wise habit of saving. A subject that, by the way, is not taught in any curriculum.
Therefore, we suggest you establish a series of measures at home with which you will begin to understand the importance of saving effort.
- Assign a weekly payment. It is true that you could also pass them a monthly payment instead of a weekly one, but that is for ‘advanced students’ in money management and we doubt that your children are of those. Therefore, start with a small weekly amount that you consider appropriate to your age, neither too low nor too high. In the latter case, if you overdo it – even if you can afford to be that splendid – you would be disservice because you could buy all the whims and not understand the need to ration your small capital. In this sense, it is important that they know that money has its limits and that they must give up certain things for the benefit of others. In short, the wise man would not “all cannot be done”.
- Explain where the money comes from. Do not let them believe that money grows on trees, that it springs from a magician’s top hat or from the infinite belly of an ATM. Let them know, without dramatisms, that it is necessary to work in order to have a house, a car and rich food on the plate. Also that sometimes the work is scarce and, therefore, it is necessary to save for those hard moments.
- Preach by example . It is true that children imitate all behaviors, even the most reprehensible. Therefore, you can not pretend to start saving when your day to day is an eternal ode to consumerism.
- Talk with your child about the virtues of saving. Yes, you must explain that reserving a certain amount can be used for unforeseen or unexpected needs. Perhaps, where appropriate, they understand it by saving for a possible toy that they might like at a certain time and that, otherwise, they could not get.
- Initial in basic concepts such as the operation of a credit card , in savings accounts or even in the sense of fast loans and what important role they can play on specific occasions. Tell him everything you think is convenient; but, yes, at the first sign of boredom, the monserga changes.
Savings accounts for children
Despite the stubbornness of Michael Banks for not entering his penny in the bank and allocating it to feed pigeons in the park, as we saw in Mary Poppins, the truth is that opening a savings account is not such a bad idea as this movie suggests.
Therefore, in addition to influencing the aforementioned aspects, financial institutions offer a wide range of savings accounts aimed at children, although obviously managed by parents or guardians.
Of course, they are accounts designed by and for children and do not allow direct debit of receipts, as well as linking credit cards. Thus, they are excellent excuses for our children to begin to be aware of the importance of entering a capital from time to time that, to top it off, will generate interest.
They can be opened as soon as they are born, although it is necessary to provide the child’s ID . Procedure that we must complete to open the account and that for a few years, specifically since decree 1065 of 2007, is required to avoid tax fraud.
Although it is possible to solve this requirement with the request of the provisional NIF to the Tax Agency with the presentation of the Family Book (there are entities that even assume the management themselves).
What are the main features of the accounts for children?
-They lack commissions. Therefore, there is no need to face expenses for opening, maintenance or administration fees.
-Money is available at all times.
-Gifts for ‘small savers’ such as children’s dinnerware, books, etc. Perhaps with these gifts the bankers could have overcome the reluctance of little Banks, right?
Therefore, if you think that an account of this style can complement the task of instilling notions of savings to your offspring and, to top it off, help them get a small fund, you can already weigh the huge amount of savings accounts for children that the market offers. In fact, all banks offer their ‘mini’ version: ING Direct, Bankinter, La Caixa, Sabadell, Bankia … All of them can be our allies with the cause that our children learn savings lessons.
Who knows if they will end up, in this way, generating a very valuable capital that serves to pay part of the studies, a trip, their first car or a bike. What they do with their saving effort is their own thing but, above all, try to have the teaching sounded and that your children learn to save, because it is a gift that, although it does not come as standard, we must sow in childhood. Afterwards, everything is poorly planted and late and does not take root properly.