Friday, October 21, 2011
Electronic Banking for Kids Versus Your Neighborhood Bank
We are firmly planted in the digital age and there is no going back. So, do you only teach kids about online banking and skip your local bank experience? No—do both.
Start your 5-year-old out with a trip to your local bank to open up a savings account. Explain that the bank keeps your money safe and uses it to lend (rent) money to other people to, for instance, buy homes. They pay you a little money, called interest, because they are using your money. You can get your money when you want it, but you want them to save that money and not use it until they are much older for something big like college or a house. After they grasp the regular monthly visit to deposit money, you can show them how online banking works.
Will your 5-year-old understand the concept of long-term savings? Absolutely, positively not! Do the adults in American even understand the concept of long-term savings? Absolutely, positively not! Wouldn’t it be a great concept to teach our next generation who is inheriting our personal and governmental economic messes from us?
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Great post!! I actually took my 5 and 3 year old to open up their savings accounts this year and they were so excited about saving. Now they make a huge deal when they find a penny or any coin and ask me if they can put it in their piggy bank at home. Once the piggy bank is full, we go to the bank to deposit it. I let them hold their deposit receipt to see how much money they have saved up so far.
ReplyDeleteI think they feel like they get a rush when they see their balance number get bigger.
Dali