Teach the Value of Saving. Open Your Child a Bank Account.


When my son received money as a gift for his first birthday from an interstate relative, I diligently popped it in my purse and made a mental note to “buy him something nice”. Months later I still felt guilty that money was absorbed into everyday spending. Most likely it was a grocery shop run that saw the cash vanish. I suppose in a way it ultimately went towards him, but it was hardly a special treat like I had planned.

Deciding he didn’t need another toy anyway, I recovered the money from our budget and opened him his own bank account. Most banks have specially dedicated bank accounts for kids that don’t attract fees, and can be linked to parents online banking so you can watch their savings grow. Some even feature bonus interest rates that encourage deposits and savings.

The Benefits of Saving

Now that my child’s bank account is open, when my child is gifted money, or there is a little extra to spare, it goes into that accounts for the future. The amount of money may not be life changing, but maybe it’ll be just the top up needed to help buy a first car or a ticket to explore the world a little further.

It’s also something greater than the dollar amount, it’s the value of learning about money. Whilst they’re a little young right now to fully grasp the concept, I want them to understand ‘money’; how hard it is to earn, and how quickly it can be spent.

Financial smarts is an important life skill that I plan to arm them with.

Example of Bank Accounts for Kids
BANKWEST ‘Kids Bonus Saver’
  • Available to all children under the age of 15, this account can be inked to a to a Bankwest Children’s Savings Account with parent/guardian access to the account via online banking
  • $0 monthly account fees
  • Bonus interest rate (currently 4.75%p.a.) each month $25-$250 is deposited and no withdrawals are made
COMMONWEALTH BANK  ‘Youthsaver Account’
  • Designed for under 18s, parents and guardians have full control over the Youthsaver account until the child turns 14 years of age.
  • $0 monthly account fees
  • Bonus interest (currently 2.3% p.a)  if you make at least one deposit and no withdrawals each calendar month
  • Dollarmites and School Banking program competitions with great prizes.

ANZ  ‘Progress Saver’

  • Designed to give children a good introduction to the benefits of saving regularly and earning interest.
  • $0 monthly account fees and no transaction fees
  • Bonus interest rate (currently 1.9%p.a.) if a single deposit of $10 or more in a month is made

Savvy Mumma Savings ProfileSavvy Mumma Savings is the the brainchild of  Rebecca, Melbourne Mumma to 3 kids under 3yrs of age. She is a part-time accountant in the not-for-profit sector, sharing money saving ideas for the young family. More rainy day activities coming soon!

#Content in this article has been by contributed by Savvy Mumma Savings, edited by DearBub Blog and Magazine Staff. Please apply credit if referencing this article.

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