Q. I want to teach my kids proper ways to manage their finances from young age, what tools should I use?
A. There are four different tools you can help your kids with, they vary with their different life stages.
1. Open a savings account (< 5 years old)
Select a bank that offers no fee savings accounts. Teach your child to develop a good habit to save any pig bank money into their savings accounts.
2. Open a custodial account (< 10 years old)
When your child is older, let them know stock market through first hand experience.
A custodial account is owned by your child, but managed by your before they are 18 years old. Make sure don't put too much money into the account so even your child loses all the money, it won't make any big difference to your and their lives.
3. Apply for a debit card (< 13 years old)
Let your child learn how to manage spending, it will benefit them lifetime.
4. Apply for a credit card (at age 16)
You want your child to establish a good credit history as early as possible, after letting them using their own debit cards, it's time to get them a real credit card.
A. There are four different tools you can help your kids with, they vary with their different life stages.
1. Open a savings account (< 5 years old)
Select a bank that offers no fee savings accounts. Teach your child to develop a good habit to save any pig bank money into their savings accounts.
2. Open a custodial account (< 10 years old)
When your child is older, let them know stock market through first hand experience.
A custodial account is owned by your child, but managed by your before they are 18 years old. Make sure don't put too much money into the account so even your child loses all the money, it won't make any big difference to your and their lives.
3. Apply for a debit card (< 13 years old)
Let your child learn how to manage spending, it will benefit them lifetime.
4. Apply for a credit card (at age 16)
You want your child to establish a good credit history as early as possible, after letting them using their own debit cards, it's time to get them a real credit card.
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