“Who in their right mind would give a 6-year-old a checking account?!”
That was the question my friend asked when I told them that SAFE is now offering checking accounts for the first-grade set. Even before kids have all their permanent teeth, they can take their first financial steps with a debit card and a banking app where they can deposit grandma’s birthday check with a few taps on mom’s smartphone.
So my response? Who in their right mind wouldn’t provide their child with a checking account as soon as they have their ABCs down?
Financial literacy is right up there with numeracy, strong reading and writing skills, and emotional intelligence in succeeding in life. Introducing children to these concepts in age-appropriate ways provides foundational knowledge to support them as they move from childhood to adulthood.
A study from Cambridge University found that a person’s approach to money is pretty much baked in by the age of 7. That’s right, 7. And that happens with or without mindful lessons from their parents. So, knowing that, introducing children to banking with a checking account at age 6 is a small move that can lead to long-term success.
There are many practical benefits to opening a Freedom Checking account at SAFE for your youngsters.
- Parental Safeguards: It’s part of SAFE’s family banking program that allows families to link their accounts to ensure collaboration on saving, spending, and moving money. Parents have complete access and control of their child’s checking account, so they can monitor activity as well as transfer money for allowance, chores, and gifts directly into the child’s account using the SAFE Mobile App and Online Banking. Parents can set alerts to monitor account activity and determine which family members can access the account.
- Financial Education: It teaches kids how to engage with today’s economy where most transactions are digital and more merchants are going cashless. A recent Gallup poll found that 60% of U.S. adults make only a few or no cash purchases at all, and it’s expected that 90% of point of sale transactions globally will be cashless by 2028, according to the latest WorldPay Global Payments Report. Parents can easily teach a child how to buy something using their own debit card at a point of sale. Mom or dad can ensure that their child doesn’t run amok with the debit card by using card control tools in the SAFE Mobile App that let parents easily turn the card on to let the child make the purchase and right back off again when the transaction is complete.
- Family Discussions: It encourages family discussions and hands-on lessons about personal finances. Parents can hold regular account check-ins with their kids to monitor balances, deposits, and transactions. Before going shopping, either in-person or online, parents can go over the account with their child so they see the direct connection between how much money is in the account and how much they can spend.
- Establish Banking Relationships Early: It sets them up with a banking relationship that can last well into adulthood. Having a connection to a credit union or bank early on helps children through every stage of life. It’s a secure place to save gift money, directly deposit paychecks from that first job, save for a car, and pay living expenses after they’re on their own. When they become an adult, the relationship opens doors to loans and other products that will support their financial goals, such as credit cards, vehicle loans, and mortgages.
Parents who are ready to explore ways to introduce their children to banking can contact SAFE and we will be happy to help.
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