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What are some tips for setting up a
KidsSave Account ?
When you create a KidsSave Account you will be given
the opportunity to choose a variety of options for
the Account. They are:
Each of these, along with some
helpful ideas, is described below.
INTEREST PAYOUT
For most kids, the interest earned in a regular
savings account is nothing to get too excited about.
That's because kids usually don't carry huge
balances in their accounts and therefore don't
receive a lot of interest income.
As an incentive to get kids to save their money,
KidsSave offers the option of choosing an interest
rate -- one that will allow the Account to grow more
rapidly. The interest rate is applied monthly
because, at this age, it is easier for kids to
understand it this way.
 Why
would I choose this option?
-
Account value grows at a faster
rate encouraging saving.
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Provides an incentive for kids
to save their money.
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Helps teach the compounding of
interest.
MATCHING PAYOUT
Another incentive to get kids to save their money is
to match them dollar for dollar...or 50 cents for
each dollar saved...or even two dollars for every
dollar they save! You get to choose the amount
you want.
This matching funds option is similar to most 401K
plans offered by many employers. If kids can
understand the value of participating in a
matching-type of program, they will be better
prepared to take advantage of a 401K when they are
adults.
 Why
would I choose this option?
-
Provides an incentive for kids
to save their money.
-
Teaches the value of opting in
on an employers 401K plan.
-
Can help increase the the value
of the Account.
ALLOWANCE
An allowance is probably the most effective tool we
have to teach kids how to manage their money.
With an allowance program, the responsibility of
paying for certain items gets shifted to the child.
Choose the amount, how often, and when you want your
child to receive allowance and the KidsSave program
will make sure it gets deposited into the Account.
 Why
would I choose this option?
-
Teaches kids to manage their
money.
-
Allowance automatically
deposited decreasing the likelihood that the
allowance will get spent.
-
Kids develop a sense of
independence and responsibility.
SAVINGS LOCK
Saving money can be hard. Sometimes kids need
a helping hand. With the KidsSave program, an
Account can be set up with a lock so that only a
percentage of total deposits is available for
withdrawal.
When this option has been activated, a small lock
icon will appear on the child's Account near their
balance. Clicking on this icon will reveal the
total amount available to be spent.
Why
would I choose this option?
-
Instills the value of putting a
certain amount of money aside for emergencies,
big-ticket items, charity, etc.
-
Teaches kids to live within
their means.
CONFIRMATION
Just to be on the safe side, KidsSave offers parents
the option of confirming all their child's
transactions. These transactions may be in the
form of deposits or withdrawals that the child has
input into their registry as entries.
Sometimes the entries get recorded inaccurately and
the confirmation allows parents to double-check and,
if needed, make the necessary corrections.
Once the entries have been approved, a check mark
appears next to the transactions on the child's
registry.
Why
would I choose this option?
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