Our eldest has had a bank account, actually a building society account, for probably four of his five years. Our youngest is two and we’ve never opened one. With another one on the way (I know, right!?) we thought it would be a good time to get all their finances in order.
Closing down the Yorkshire Building Society account and transferring everything into a new account for our eldest was the idea, as we moved to a town with no YBS, which isn’t ideal when you get cheques for birthdays which need paying in. I also want the kids to learn about money, to having access to an account in the town they live in is better.
We’ve opted to open them two accounts each – one at the bank where I have an account, mainly for savings and another at a bank we aren’t associated with. This one is one they will use more so, if they want to get some cash out for toys, or sweets!
There are loads of great sites online which detail the best rates and I spent a good hour or too having a look at the best options. The highest rate doesn’t always work for you as it often means locking your cash away or not being able to access it, or having minimum monthly pay-ins etc. I could tell you what the best rates are but they won’t necessarily suit your situation. Do your research and find the best for you.
Instilling the knowledge and confidence about money in kids at a young age, in my opinion, is only a good thing. The more we educate and understand, the more smoothly our children’s finances should run, and if they get into trouble, they’ll hopefully have the info to get them back on track.