[3mummy3]

I have four kids, the older two are 14 and almost 13. We would like to start giving them pocket money and want them to have to save a portion if it so would like to open some accounts for them. Just wondering how everyone else manages money and bank accounts for kids this age?

Should we open them two accounts, one for saving and one with an eftpos card for spending. Or should we just open one for saving and have them keep the rest of the cash in their wallets/ money tin? I can't remember when I first got an eftpos card so not sure if they are too young yet?

Also if we allow them to access their savings at 18 or 21 or whatever age, should we put extra in our older sons account since he will have less money than his younger brother because the younger one will basically have an extra 17mths of saving due to being younger when we start?

We bank with the NAB and have an online savings account with ING. Is it possible to get the kids accounts with one of these banks and have Internet banking access to them to set up regular direct debits?

Also what do you think is a good amount of pocket money at this age and a fair amount to insist on saving?

This post has been edited by 3mummy3: Yesterday, 03:06 PM

[Chchgirl]

I just have a commonwealth bank account for both of them with a keycard. It's easier for me to transfer their money into as I bank with them.

I don't insist on how much to save as yet, I let them learn to budget on their own. Ironically the oldest (15) finds it easier to save if she has the money put in her account rather than given cash in hand.

In saying that, she has been working one day week/fortnight for a few months so I don't pay her pocket money anymore!

This post has been edited by Chchgirl: Yesterday, 03:33 PM

[Charlies Angel]

I think that they are old enough to be able to manage their own accounts. Take them both to the bank, and open an account in their own names, with them as signatory. In time, if they wish, they can open a second linked online account that is only accessible by internet with higher interest for savings.

They are at a good age now to start learning about saving, goal setting and budgeting. I think some financial independence is important and starting young is good. My niece and nephew are similar ages and are very goal orientated - that is, they like saving up for special things such as ipads, and will ask for $$ for birthdays/ Christmas etc.

My folks did a similar thing for me when I was young, and I would consider that it taught me the value of money (versus just asking for stuff), encouraged me to earn my own, and helped me set goals to obtain the important things in life. As a result, I've never had an issue with credit cards either - the benefit of starting young rather than assuming that 20yo just 'know' how to manage money.

This post has been edited by Charlies Angel: Yesterday, 03:43 PM

[jks91]

I would think about letting them select themselves where they want to bank with. These days with EFT transfer it is easy enough for you to transfer the money to anyone and the processing times are a lot quicker than they used to be.

Get them to look at the benefits of each account, think about where they have ATM's in the places where they visit (ie in our town the cinema/timezone strip only has NAB and Bankwest ATM's nearby so others would have to pay ATM fees). Make sure they understand the difference between the spending account and savings account.

I think I had an eftpos card in early high school so they should be old enough.

A quick google search brings up these possibilities:

Nab Classic Banking & ISaver
http://www.nab.com.au/wps/wcm/connect/nab/..._kwcid=FtD7sLSR

CBA Everyday Account & Youthsaver/Netbank Saver
http://www.commbank.com.au/personal/youth-...-teenagers.html

Bankwest Student Edge & Telenet Saver
http://www.bankwest.com.au/personal/everyd...student-account

Westpac Choice & Reward Saver
http://www.westpac.com.au/personal-banking...ent-package/#s2


Of course there is many many more. Some banks also offer Debit Mastercards/Visa Debit at 16, others at 18 - this might be something to consider for your older children.

[opethmum]

Like PP I would take them to the bank of their choice and with what has the most benefits to help them make the most of their money. I would get them to open their own accounts and get them in charge of their own money.
I would let them make their own choices with their own money and if they choose to drain their accounts so be it. Of course have an advisory role and let them know you are there for advice.
I know it is hard to not control this part of their lives but it is better to learn sooner rather than later.
They are soon eligible to get part time jobs and having accounts in their names will make it easier for the employer etc.
Also it would be a great motivator to let them pay for their own things and get them to know the value of money and allow for them to experience the finance side with all its benefits and rewards or lack thereof.