Opening a bank account for your child

A basic level of financial literacy should be part of every child’s education. Sadly, if the results of the recently released Household, Income and Labour Dynamics in Australia survey are to be believed, a surprising number of adults struggle with even the simplest of money-related questions.

Perhaps the best way to give your child a head start is by setting them up with a Great Southern Bank Youth eSaver Account. Not only will it introduce them to good financial habits early, they’ll also be earning a better rate of interest than they would with a regular savings account (on balances up to $5,000).

What are the benefits of setting up a youth account for my child?

There are many benefits to setting up a youth account for your child. Arguably chief among them is teaching the discipline and value of saving. When this lesson sinks in, a world of possibilities opens up.

For one thing, your child will no longer be restricted to what you consider an appropriate amount to spend on a purchase.

If they’ve got their heart set on the latest outrageously-priced Lego collectible, they’re free to keep putting away their pocket money until they can buy it themselves. And if they decide along the way that it isn’t really worth paying so much after all, well, that’s a pretty valuable lesson too.

What we’re talking about here is financial responsibility. The sooner your child is empowered to make their own decisions about money, the sooner they’ll be ready for the real world.

What’s the best age to open a youth account?

While there’s no right or wrong answer to this, you certainly can’t open a youth account too early. Indeed, many parents do so shortly after their child is born. As long as you choose a youth account with no fees, you can’t go wrong.

Other common times to open a youth account are when your child starts receiving pocket money, when they first receive a cash gift, or when they start earning their own money from a part-time job.

What factors should I consider when choosing a youth account?

Just like with any bank account, the main things to look for are low fees, a competitive interest rate, and a good range of features.

As we mentioned earlier, the Great Southern Bank Youth eSaver Account offers a higher interest rate than our regular savings accounts on balances up to $5,000. Yep, it pays to be a kid! And not only that, but unlike many of its competitors, you won’t lose your interest if you make withdrawals.

Perhaps even more appealing to children is the fact that they can give their Youth eSaver Account a nickname. So, to revisit our example from earlier, they could call their account “LEGO SAVINGS – DO NOT TOUCH!” as a fun way to keep themselves motivated. And if they end up saving for something else instead, they can rename it very easily.

What about transactions?

Younger children (i.e. under 10 years) tend to be mostly interested in saving, but if yours is a bit older (i.e. 10 to 17 years), they’ll likely want the freedom and grownup feeling offered by a Visa Debit card and the ability to tap and pay with a smart device.

In this case, you might want to consider pairing up their savings account with an Everyday Youth Account, which is similarly free of electronic transaction and account-keeping fees.

Ready to open a youth account?

You can open a Youth eSaver Account or an Everyday Youth Account online in about five minutes. If your child is under 10 years, a parent or guardian must authorise the account opening and be listed as a signatory on the account to transact on behalf of the child.

If you have any questions about our youth accounts, feel free to give us a call on 133 282.