With the Capital One Kids Savings Account, teaching our children about money is something you can start doing early in your kid’s life. Today, unlike in years past, parents are more reluctant to open a savings accounts for their children because of fees, the inconvenience of going to the bank and making deposits, and in some instances, because they have no control over the child’s account. Capital One 360(T) changes many of these issues for parents.
Capital One Kids Savings Account
If you wanted to find all the same features as an adult account in an account specifically geared towards children, Capital One has the answer! The Capital One Kids Savings Account has many of the same features as a standard adult account including
- No fees – you will never have to worry about your child’s savings account shrinking because of inactivity, maintenance fees, or minimum balance requirements. Capital One Kids Savings Account has no fees.
- Easy account access – Capital One understands your children have more access to technology than was available in year’s past. That’s why they made it easy to access the Kids Savings Account online through an easy web interface or via smartphone. If you live near a Capital One branch, they can also visit the branch.
- No minimums – savings accounts can be opened with no money and once activated, will continue to remain active until it is closed, even if there is no balance! Your child can continue to use and reuse the account as often as they would like.
- Interest on balances – even if your child has a small balance, interest will accrue to their account. This is a great way to teach them about the power of compound interest. Imagine how thrilling it will be for your child to see their balance increase even if they do not put any new funds in their account.
- Parental controls – you can link your bank account to your child’s savings account, but the good news is that only you can make transfers to and from the account. This gives children access as well as a needed stopgap to avoid problems.
Teaching Children About Finances
Financial literacy is important because your children should learn how to properly maintain a bank account and how to be responsible about handling money. Having a savings account for your children helps them develop these skills at a very young age.
Kids who do errands around the home, run errands for neighbors or perform any activity which earns them money means the time is right to help them learn the importance of smart spending and saving. Having a Capital One Kids Savings Account with the flexibility allowing your child to deposit money online, from a smartphone, in person, or by mail can all go a long way towards that education.
Managing a Child’s Allowance
One of the best aspects of the Kids Savings Account is you, as a parent, can manage your child’s allowance. You can transfer from your account to their account to pay their allowance which often means the better opportunity to teach the value of savings. Thanks to the flexible options, you can even pay an allowance by personal check, so your child gains the experience of handling banking transactions electronically.
Setting Savings Goals for Kids
One of the best reasons to set up a Kids Savings Account is to teach your children about saving money. However, there are other lessons to be learned as well such as saving for something specific. When your child is determined to get a new bike, buy a special pair of shoes, go to an amusement park with friends, you can help them determine how long it will take them to save for that goal.
Additional Kids Savings Account Features
Having a savings account with many of the same features that any other account offers is a bonus. In fact, children’s accounts can even have a beneficiary attached to them which you can control should you decide to take advantage of this feature. It is also important to remember these savings accounts are FDIC insured up to $250,000 making them as safe as other deposits in a bank.
We all want our children to understand how money works and the value of saving money. As a parent, you can help your children manage their own money, teach them about interest rates and how interest on an account helps their money grow, and help them set realistic goals for their money.
The younger a child learns how to manage their own money, and learn the value of saving money, the more likely they are to develop a life-long habit of good spending and savings habits. Regardless of how old your child is, today is a good day to get started on the path to financial literacy and Capital One Kids Savings Account is here to help you do just that.
