Kid finances
GB is my third child. With each child this has been an exciting day. Today we went to our local bank and opened his very own savings account. He was really thrilled.
It all started because Doc Bish and his wife gave GB a check for his birthday. It’s been sitting in his little clown cup, which he uses as a makeshift bank. Rather than just cashing it, I thought it would be a good lesson to learn about grown-up banking. Plus, he had a tidy little sum just sitting there out in the open. Not a good idea.
The bank manager really made a big deal out of GB’s new account and took plenty of time to show him how to make deposits and withdrawals. He also explained about the interest GB would earn on his deposits and why he would be paid interest. I thought GB summed it up nicely by stating that interest was like “bonus money.” He always thinks of things in terms of video games….LOL!
All the way home, he kept talking about how his money was safe from bad guys now. And how much security the bank had. He talked about the interest a lot, too. He thinks it’s cool that he’ll get paid for just being patient and letting the bank use his money.
When Aquagirl and Jabem were younger, their Granddaddy used to buy them bonds. And GB was with them this past Christmas when they went to the bank and cashed the bonds in for a whopping $350. Remembering this trip with his sister and brother led to a conversation about how bonds work. Aquagirl and Jabem took their own savings plus the bond money and invested in a one thousand dollar CD. So now GB wants to start saving so he can have a thousand dollar CD when he goes to college too.
He has set a goal for himself to earn enough money that he can deposit $5.00 each month. That way, at the end of one year he will have added $60. to the $50. that he put in today. As he gets more opportunities to earn money, he will be able to deposit more money. I think that is a pretty good goal for a nine year old.
This is GB endorsing the check from Doc Bish.
And this is him outside the bank with his little savings book.
I remember when I was a kid, my mom chaperoned a field trip to a bank, and opened me a savings account. The whole experience still stands out in my memory.
Congratulations, GB!
http://steph-roomofmyown.blogspot.com/
Comment by Steph — April 26, 2007 @ 8:31 pm
What a great lesson! I’ll have to think of something special like that to do for my dd as she’s had an account since she was little bitty.
Comment by Dana — April 26, 2007 @ 11:13 pm
I think it’s great that any kid has a savings account. I can remember when I was young (yes, I CAN remember back that far) and had a paper route. Whatever I put into the bank, my father would match, so it grew quickly. What bothers me is that back then we were paid 4 percent interest, yet today it’s only a fraction of a percent. Yet the bank will use your money to make loans to other people at 6 to 8 percent interest. What a rip off.
Comment by Grampa — May 3, 2007 @ 8:26 am