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How do I reconcile my child's KidsSave™ Account with his/her
real bank savings account? If your child has a savings account with a bank or credit union, chances are
that their KidsSave Account and their savings
account will not always have the same balance.
There is an easy way to sync the two accounts.
We call this reconciling the Account. Decide how often you would
like to reconcile. A lot of parents decide to do it on a monthly basis
when their child's savings statement arrives. But it can also be done
bi-monthly, quarterly, or even yearly if you like. We recommend to do it
at least quarterly. That way you're not left with a big "bill" to pay.
With a bank or credit union savings account, your child is probably earning a
small amount of interest or dividends on their savings. The interest and
dividends will fluctuate depending on, for example, general rates of interest.
This additional income also means that your child has actually earned more
money than what their KidsSave Account may show.
In addition, your child's KidsSave Account may include more deposits due to
allowance, matching, and/or interest payouts which don't show up in their
savings account.
So now it's time to reconcile the two accounts. Let's start with the
interest/dividends.
Your child's bank statement will indicate the amount of interest or dividends
received for the statement period. Simply have your child deposit the
amount into their KidsSave Account. Label it 'interest earned' or
'dividends earned' in the description. Remember, if you're not reconciling
monthly you will need to make sure that you include each month's
interest/dividends for the given time period.
Next, you need to make sure you deposit to or withdraw from their bank account the change in KidsSave
Account value for the given time period. The place to
find this change is on the Banker summary statement screen for the specific
Account under the Options heading. A deposit into their bank account would result from
any
allowance, matching, and/or interest payouts which were automatically deposited
into the KidsSave Account as well as any
deposit transactions. A withdrawal from their bank account would be made if your child has
taken out more than he/she has deposited over that time period.
Both accounts have now
been reconciled and should have the same balance.
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