The benefits of having a bank account for your child
Give your child a chance to learn how to manage money from a young age.
Some children in South Africa only start having bank accounts when they leave home to go stay in boarding schools or college.
However, experts advise parents or guardians to have debit or savings bank accounts for their children as soon as possible.
Several banks now offer parents the option to open their children bank accounts without paying monthly fees.
Let's look at the benefits of allowing your children to have their own bank accounts and cards:
Great tool for teaching financial management
The sooner your child learns about financial management, the better.
Having their bank account and seeing how money works puts them in a better position to better manage money even as adults.
READ: Dealing with black tax - How to learn to say 'no'
Helps them set up financial goals
Let your child know how much you would be giving them as a monthly allowance and let them budget.
They can even set up financial goals based on how much they know their allowance to be.
Financial security
Having a bank account allows children to understand the world of financial literacy.
They can learn to save their own money which can give them a sense of financial security.
Teaches online transacting skills
Allowing your child to have a bank card and do transactions can help him or her learn safety skills.
They will also learn how to track their spending.
Independence
Opening a bank account for your children and allowing them to track their spending will give them a sense of independence because they won't always have to ask for money from you.
READ: How do you have a conversation with your partner about money?
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