It’s never too early to teach kids about money and the benefits of regular saving. The sooner they learn, the sooner they’ll develop good money habits which can last a lifetime.
That’s why many parents or grandparents may want to open a Greater Bank account for a child or grandchild.
You may be wondering, is this possible?
The short answer is, yes! Anyone can open a Life Saver youth savings account on behalf of a child or grandchild. We’ll get to how you do that soon.
Why open an account for a child or grandchild?
When kids first have a bank account, it’s important to encourage them to save. A good tip is to have a goal in mind and involve them in the decision about what to save for, like a toy or video game. Motivation is important, so if they know there’s a fun reward at the end of it, they’re more likely to stick to the plan.
Why partner with Newcastle University to promote financial literacy?
Check the account balance from time to time so they can see their money growing through making regular contributions and how interest can boost their savings. In addition, a Greater Bank Life Saver account will reward regular saving by paying bonus interest if money is deposited but none is withdrawn. Consider what type of account is appropriate for your situation. You can read more about account options here.
Once the child turns 14, they can have direct access to the account, but you may choose to remain a signatory. This means you can still see the deposits being made, what they are spending their money on through EFT purchases, or when withdrawals are made at a branch or via an ATM. This will allow you to counsel the child about their saving and spending, and reinforce the importance of maintaining the saving discipline.
Good financial habits bring their own rewards in the form of financial security and financial wellbeing. But did you know that financial wellbeing brings benefits in other parts of life as well?
We recently commissioned the University of Newcastle to conduct research about financial wellbeing. The study found that people with higher levels of financial wellbeing have significantly higher levels of general wellbeing and life satisfaction. It also found a link between higher financial wellbeing and higher financial literacy, which means you are more likely to make better financial decisions around a savings plan and managing your obligations.
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So, teaching kids how to save and manage their money more generally has a range of positives!
How to open an account for your child or grandchild
To open an account for your child or grandchild, you’ll need to visit your nearest branch.
If the child is under 14 years of age, they will need a signatory to operate the account for them. This means you (as the signatory or benefactor) will have control over the money in the account and any transactions. This way, you can help the child make decisions about when to withdraw money from the account and how to best use the money. This is an important step in teaching kids about managing their money.
If you intend to act as a signatory on the account for the child, we’ll need you to bring along some forms of identification for yourself, such as your driver’s licence, as well as identification for the child. If the child is also going to be signing on to the account, they will need to come along to the branch with you and be able to sign to accept the Terms and Conditions.
If you don’t intend to act as a signatory, we’ll just need you to bring identification for the child you intend to open an account for, such as their birth certificate or passport. The child will need to be with you to sign and get the account up and running.
If you don’t have a drivers’ licence or the child is unable to locate their birth certificate, we still may be able to help. Check out our FAQs for more identification options.
If you’re still unsure or would like further clarification before opening an account on behalf of a child, you can give us a call on 13 13 86.
