One of the best things that any grandparent can teach a child is the value of money and benefits of saving it for a rainy day. Assisting him to open and manage a bank account is probably the best teaching method. Explain to him that all the money he saves should be placed somewhere safe where it can grow. A real bank is safer than his precious piggy bank. Teach your grandchild early and he will develop the value of money that will help him later on in his life.
- Inquire with banks around your area. Most banks will have account services for minors. In fact, many of these banks will encourage minors to open a bank account since these people are the bank’s future customers. Inquire at all the banks in the area to see their banking services for minors. Each bank will have a unique deal or promotions for opening a minor’s savings account. Check these deals out and go with a bank that provides the best deal. Take note of the minimum account required to open and maintain the bank account. Ask for all the requirements on opening the bank account.
- Prepare the requirements. While you are at the bank, make sure to get all the requirements to open a bank account there. You and your grandchild will probably need to fill up an application form and the first deposit slip. Get these forms and bring it home so that you can accomplish them. Typically, you will need to have the child’s name, age, date of birth, address, and social security number in order to fill up the forms. Obviously, you will need to fill up the form asking for the information of a supervising adult or parent.
- Finalize the amount for deposit. The next thing to do is to sit down with your grandchild and count all the money he has in his piggy bank and all the birthday checks he has saved over the years. Let him count the money to give him a feeling of achievement. Supervise him so that the count is accurate and correct. If you already have a deposit slip with you, let him fill it up after counting the money. Again, you will definitely need to supervise him on filling up each field. Since you have no account open yet, make sure to leave the account name and account number blank for the meantime.
- Go back to the bank. Now that you have filled up the necessary application forms and deposit slip, bring your grandchild along with his money to the bank. Submit the forms, deposit slip, and the money to the bank teller or representative. If they ask for it, show them at least two valid photo IDs if you are the adult supervising the bank account for the child. If the child has an ID, show this to the teller as well.
- Explain the process to the child. Once the account is open and the money is deposited, it is time to explain to your grandchild that he should place any cash or checks he receives in the bank by depositing it into his account. Purchase a plastic envelope for him and tell him to place all the bank statements and the passbook for the account in the envelope. Tell him to always place this envelope in a safe place.
As your grandchild grows up, he will accumulate a good emergency savings account plus he will have learned the value of saving money and the importance of banking. Make sure to teach him early as this can develop his basic math skills as well.