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?