School may be out for summer, but there’s still plenty for children to learn about when it comes to the importance of good money management.
Getting into the savings habit from an early age is something regional building society the West Brom is keen to promote as it prepares to unveil a new account for young people in its branches next month.
There are two common approaches for children’s savings products. An easy access account is for those who have an initial deposit to invest and want the freedom to make withdrawals whenever money is needed.
An alternative is the regular saver account, which requires smaller deposits to be put down each month in order to build up a larger nest egg over the course of a year. Withdrawals cannot be made until the year has passed, taking away the temptation to splash your cash too soon.
Sophie Dwyer, Product Manager at the West Brom, said: “It’s important to make children aware that sometimes we have to save in order to get the things we want. In some cases it can also give them a head start for significant financial milestones when they get older, for example buying a car or putting down a deposit for a house.
“We know lots of parents and grandparents also want to contribute and it is possible for them to set up and manage an account on behalf of a child through one of our branches.
“Whether it’s to achieve a specific goal, or just have money set aside for a rainy day, watching your savings grow is always rewarding, irrespective of age.”
As well as providing savings accounts for children, the West Brom runs workshops on financial awareness in local schools, covering topics such as the real value of money and the dangers of debt.