One of the best things a parent can teach a child is the habit of saving money. It isn’t always easy. First of all, many parents aren’t fabulous savers themselves and it feels a little hypocritical to preach “saving” when you aren’t doing it yourself. Another obstacle has historically been the logistics – having to physically travel to the bank, sit around waiting to talk with a bank representative, having to physically travel to the bank every time you need to make a deposit and having to choose from an array of bank products that really don’t meet your kid’s needs.
Regardless of your personal mistakes with saving money in the past, helping your kids integrate a savings attitude into their psyche is vital to making sure they don’t repeat your mistakes. ING makes it easier with their new Kids Savings Account.
Your first step?
Open an account for yourself. Seriously. ING is a great company and has one of the best savings accounts around. Once you’ve opened an account, you’ll be able to set that example for your kids!
Kids feel empowered
Once you get the account opened, your kids will be able to:
- Check their balance
- Change their personal info
- Change their PIN
- Change their account nickname
- Create a personalized ‘Saver ID’
- Download their account history, tax forms and eStatements
These options will allow your children to feel a moderate sense of control with their account and encourage them to watch the account grow.
How to deposit money into your kid’s savings accounts
You can “link” another outside account (such as your PerkStreet rewards checking account) to your savings account with ING Direct. With that setup, the adult listed on the child’s account can then deposit money in any of the following ways:
- Set up an Automatic Savings Plan – Have money deposited on a regular basis. Just choose how much you want to deposit into your account and how often. This is an effortless way to pay a kid’s allowance.
- Make a deposit electronically – Use the ‘Transfer Money’ tab to make an electronic deposit from a linked checking account or other ING DIRECT account.
- Deposit cash – Deposit the cash into your external linked checking account. Then go online and transfer the money over to the kid’s account by making a deposit electronically.
- Deposit a check – Write your account number on the check, drop the check into an envelope and mail to ING Direct.
What happens when the child turns 18?
When the child on your Kids Savings Account turns 18, the account will automatically convert to an Orange Savings Account. ING will send instructions to the new adult on how to set up a link so they can continue to contribute to their savings plan … and teach their children to be savers!