A Smart Start: Helping Your Kids Build Wealth with a Savings Account

Start Them Young: How I Helped My Child Build Smart Money Habits with a Savings Account

As a mom of two, and a financial consultant, I’m always looking for ways to teach life skills both in the office and at home. One of the most important lessons I’ve started teaching my children is how to manage money — and it all began with something as simple as opening a savings account.

My own journey into financial literacy started later in life, so I wanted something different for my kids. I believe it's never too early to talk about money in a healthy, empowering way. In this blog, I’ll walk you through how I introduced saving to my child and how you can do the same, along with some tools and books we’ve loved along the way.

Why I Decided to Open a Savings Account for My Child:

It all started with a piggy bank overflowing with birthday money and tooth fairy dollars. My little one was excited about every coin — but also tempted to spend it all at the next toy store visit.

That’s when I knew we needed a better system.

We opened a kids’ savings account together at our family’s bank. It wasn’t just about storing money — it became a fun and meaningful way to talk about wants vs. needs, patience, and planning for the future.

Watching their face light up when they saw the balance grow (even by a few dollars) was such a rewarding moment. It helped me realize: financial confidence starts early.

At What Age Should You Start?

Technically, you can open a savings account from birth. But if you're hoping to use the account as a learning tool, I recommend waiting until your child is around 5–8 years old — that sweet age when they’re curious, talkative, and starting to grasp the basics of math and value.

The Power of Money Books for Kids

Before we even opened the account, we started reading fun and engaging books about money. Here are a few we personally enjoyed and I highly recommend:

📘 “Money Ninja” by Mary Nhin
A short and simple read that teaches young kids the basics of saving, spending, and sharing.

📗 “The Berenstain Bears’ Trouble with Money” by Stan & Jan Berenstain
Perfect for ages 4–8, this story shows kids how easy it is to spend and how rewarding it is to save.

📙 “Rock, Brock, and the Savings Shock” by Sheila Bair
This one is great for slightly older kids (6–10) and introduces the magic of compound interest.

📕 “How to Turn $100 into $1,000,000” by James McKenna
An awesome pick for tweens and teens that makes building wealth feel exciting and achievable.

Books like these open up money conversations naturally, making kids feel smart, curious, and confident — which is exactly what we want for their future.

Which Savings Account Should You Choose?

Here’s a quick breakdown of the different types of kids’ savings accounts:

1. Traditional Bank Account

   What it offers : Joint access, low fees, easy to monitor

   Best For : Everyday saving and learning together

2. Online Savings Account

   What it offers: Higher interest rates, digital convenience

   Best for :Tech-savvy kids & parents

3. Custodial Account (UGMA/UTMA)

   What it offers: Managed by you until they turn 18/21

   Best for: Long-term savings and gifts

4. 529 Plan

   What it offers: Tax free growth for education expenses

   Best for: Saving for college or trade school

We chose a traditional joint account because it allowed us to go to the bank together, deposit money physically, and get that “real world” experience.

Real Benefits (And a Few Things to Watch Out For)

What we’ve gained:

• A fun, hands-on way to teach saving

• A better understanding of needs vs. wants

• The joy of watching money grow with interest

• Regular conversations about values and goals

But also:
Some accounts come with monthly fees or minimum balance requirements, so it’s worth doing your research. I always recommend comparing banks or credit unions, or even asking your financial Consultant (I’d be happy to help!).

How to Get Started – Step by Step

Here’s a quick checklist to guide you through:

1. Talk about money first. Read books, play games, and ask questions like, “What would you do with $10?”

2. Compare banks. Look for low-fee, child-friendly savings accounts.

3. Gather your documents. You’ll need your ID, proof of address, and your child’s Social Security number.

4. Open the account together. Make it a special moment — let them hand the money to the teller or click “submit” online.

5. Set a goal. Whether it’s a toy, bike, or summer camp, helping your child save for something exciting gives them purpose.

6. Review monthly. We look at my child’s account at the end of each month and talk about what went in, what came out, and why it matters.

Bonus Tip: Make It a Habit

We started doing a “money moment” every Sunday where we:

• Count allowance

• Talk about what we’re saving for

• Read a new money book or revisit a favorite chapter

It’s become part of our family rhythm — simple, fun, and empowering.

In Closing

The greatest gift we can give our children isn’t just money — it’s the confidence and knowledge to manage it wisely. By introducing savings early and reinforcing those lessons with stories, conversations, and hands-on experiences, you’re setting them up for a lifetime of financial wellness.

Want help getting started? I offer friendly, judgment-free financial guidance for families. Whether you’re ready to open your child’s first account or plan for college, I’d love to chat and support you on the journey.

👉 Let's raise money-smart kids, one habit at a time.