What Is a Child Savings Account?

“What is a child savings account?”

In a child savings account, you can deposit spare change, birthday money and other loose funds to accrue some interest throughout their childhood. This teaches children the lesson of “a penny saved, is a penny earned.” Read on to learn more about a child savings account and how you can set one up with First Bank.

What Is a Child Savings Account?

A gateway to education.

Research suggests that a child savings account greatly increases the odds that a child from lower to middle income will attend—and even graduate—from college. The research, conducted by Prosperity Now in Washington, DC, shows that children with savings accounts are more likely to start planning for college early and consider themselves college bound.

A pathway to financial independence.

Additional research conducted by the University of Kansas finds that children with savings accounts are four times more likely to invest in the stock market in adulthood.

So, while the return on a child savings account might seem minimal on the surface, the benefits can pay big dividends in the long run. A child savings account is a great way to teach your son or daughter financial literacy and responsibility.

Open a Child Savings Account with First Bank

With just a $10 initial deposit, customers under the age of 18 can open a MyFirst Savings account and get started on a lesson with a lifelong payoff. A MyFirst Savings account comes with no monthly maintenance charge and no minimum balance needed. Interest is earned as long as certain requirements are met. Our account also comes with eStatements or paper statements, online and mobile banking* and two withdrawals per month free of First Bank fees.

Learn more about our child savings account and guide your child to a brighter future with First Bank.


*While First Bank does not charge for mobile banking, your mobile carrier’s message and data rates may apply. 2. Withdrawal fee of $2 each after the first two during the month. Federal regulations limit withdrawals of preauthorized transfers to two (2) per month, including checks, drafts, online transfers, telephone transfers and debit card purchases.

———

Prosperity Now: https://prosperitynow.org/blog/empirical-evidence-support-childrens-savings-accounts