Understanding Banking for Kids- Robin Trehan

CHICAGO - June 24, 2018 - PRLog -- When the term banking is mentioned, most people think of financial institutions and the services they offer. A broader and more explicit definition of banking is the act of offering financial services to either individual consumers or even businesses. Such financial services that are provided by banks including but not limited to:  savings plans, loans and managing various investments on behalf of their clients. Whereas banking seems to be a reserve for the adults or those who have reached the legal age to enter into a binding contract, there is a need to introduce it to kids. Banking is essential for kids as it helps them to learn and appreciate the need to save money from a tender age.

The central idea in the whole concept of banking is money. Money is a modern medium of exchange. Children start interacting with cash at quite a young age. In most cases, they are rewarded with money whenever they perform exemplary well especially in academics as well as in sports. It then follows that children usually have some money at their disposal which they can decide to either spend or save.

Banking for kids tends to be synonymous with savings. Since most kids typically do not have a regular source of income, their banking needs revolve around savings. Parents are supposed to help their kids to save their money through the available savings plan. The traditional form of savings that is quite common among the kids is the piggy bank.  A piggy bank helps kids to save their money in their homes up to a certain point when they need to use it after it has accumulated.

Notably, a piggy bank is not a very safe way for kids to save their money and this is what necessitates opening a savings account. Parents must be sure to open the savings account that best fits their given child. Furthermore, they should make their kids understand the importance of saving money and how banking works.

In conclusion, banking is quite essential for kids. This is because it not only makes them appreciate the importance of saving money but also prepares them for the real world. Going in line with this, kids who understand banking or saving at a tender age have a good chance of properly managing their finances in the future when they have become productive members of the society.

Robin Trehan, B.A, MIB, MBA ebusiness