So what exactly are some reasons every newborn should have a savings account? When I talk to other parents about saving money for their children, it seems as though most of them are fueled by the same motivation: COLLEGE! As a parent I can tell you #WhyISave, because when raising children you experience all sorts of these “financial milestones” that pop up, including buying your teen’s first car, that first year of college tuition, and eventually grand events like weddings, business ventures, and children of their own.
If you are the parent of a newborn or know someone who is, take a look at these 5 reasons every newborn should have a savings account. You will be able to see how important it is to start a savings account young, exactly #WhyISave, and how every penny can add up to a big difference.
Perhaps you already have a savings account started for your child, or perhaps you aren’t sure where to begin.
1. You will encounter financial needs before college. Yes, college is a huge expense to prepare for, but let me tell you that you will experience financial needs prior to then. For us, that need was my son’s first car. My parents started savings accounts for each of my children and put enough in each year so that when they turned 16, they would have $5,000 to use towards a car.
Zack, my middle son, is the only one who has taken advantage of his savings account – he spent weeks and weeks trying to find his dream car that was within his budget. When the time came to buy a car, it wasn’t just a dream come true for him, but for us. We were able to stay in budget and there was no need to go into debt or finance a vehicle for him. I will always be grateful for the savings account my parents started.
2. A savings account is a great way to save those early monetary gifts. I miss the days when my children were babies and had no idea what monetary gifts were! Ha! When they get money now, of course they want to spend it. But as babies, it made it easy to tuck these monetary gifts into their savings account so they could grow. Soon enough your child will know the value of money and want to spend it, so starting a savings account young is a great way to save the cash gifts from baptisms, early birthdays, etc.
3. Starting early allows your savings to grow. The sooner you start saving, the more time your money will have to compound interest and grow. Starting a savings account for your child now as opposed to when they are in their teens will give you a leg up on savings.
3. You can manage your savings online, saving you time. Growing up I can remember making trips to the bank to deposit money and check my savings balance. But now online banking has simplified the process so you can start saving from the comfort of your own home. You can choose an account that fits YOUR needs and have access to your account right from your computer. You should learn more about Keesler Federal Credit Union savings accounts!
4. Family members will be inclined to contribute to your child’s savings. My parents always wanted to be sure they gave the kids gifts they could actually use. Having a savings account for each child was always a nice option for family members who wanted to give practical, monetary gifts.
As mentioned above, my parents made regular contributions which helped my son buy his car. Having a savings account ready for each child really helped family members feel like they were giving money to my child’s future needs, and that is a great feeling.
5. A savings account removes the stress from those “financial milestones” that come up. You will be amazed at how many financial needs pop up way before college. Each child will be different, but some of these needs include a car, summer camps, semester over sea programs, and so much more. Having a savings account will help you meet these needs head on and feel well prepared.
Should you get through the teenage years without encountering these needs, then just think how much you will have saved for those later in life milestones such as weddings, business opportunities, or even travel your child/children wish to experience.
As you can see, there are some sound reasons every newborn should have a savings account.
Head over to your local Keesler Federal branch and see how they can help you achieve your financial goals!
With over 70 years of service under their belt, Keesler Federal is not only the largest Mississippi-based credit union, but also one of the largest credit unions in the Southeast. They have been helping parents prep for their children’s futures for decades!
Keesler Federal has broadened beyond the Mississippi Gulf Coast to include the Hattiesburg and Jackson metro areas, as well as St. Tammany and Orleans parishes in Louisiana. So no matter where you live, you can find a branch near youand start achieving your financial goals.
With over 228,000 worldwide members, Keesler Federal Credit Union has been helping people of various financial dreams and goals just like you. Keesler Federal Credit Union knows all about building savings, as they have been helping families since 1947 do exactly that.
Now that I shared #WhyISave, I hope you will share with me! What are some of the reasons you work hard to save money for your children?