Short answer: Yes! And the sooner, the better!
There are multiple reasons to open a savings account for your child, even if they aren’t old enough to understand anything about banking and the financial world.
By and large, college is one of the most popular reasons that parents open savings accounts for their children. According to the latest data, the average cost of tuition and fees for an in-state public college four-year degree is $19,548. If the tuition trends we’ve seen over the last decade continue (6.5% increase per year), that price will be almost double by 2030.
So for new parents or parents with young children, opening an account now can help you prepare for those high tuition costs while minimizing the chances of student loan debt.
For parents of children who are a bit older and able to earn some form of income, whether it’s from an allowance or a part-time job, a savings account can be a great way to teach financial responsibility. Children can begin to understand the value of regular deposits and interest rates, while also learning how to manage their money properly.
Should your child acquire a full-ride scholarship, choose not to attend college, or pursue a less costly two-year degree, a savings account can provide them with a stable nest egg that can be used for a down payment on a car or home, moving expenses, rent, or start an investment portfolio.
By opening a savings account now, you can provide your child with a baseline of financial stability when they enter the adult world.
If you’d like more information about NobleBank’s Youth Savings Account, follow this link, https://www.noblebank.com/personal/personal-savings/youth-savings-account.html.