Do your kids have bank accounts of their own?

No age is too young, in my opinion.
My daughter had a "custodial account" opened (meaning the parent can sign for and conduct transactions along w/ the minor) when she was six (6) months old! She got a $40 check from a relative, and even more money for her 1st birthday, so we put it into her little bank account.

My 4 year old son has had an account for a full year now.
When he gets money at Christmas or his birthday (or $4 in his Valentine's or Easter card last week!) from a relative...we drive him to the bank, and make a deposit. He feels like such a big boy!

While they are not do high level banking, they are learning about counting the money, conducting REAL banking transactions, and learning about saving money - vs. spending for instant gratification.

When my son did some toy product testing 2 wks ago, he was paid $30. I let him go to Wal-Mart and pick out a transformer for $10 that he wanted with his money and then we went to BofA to make a $20 deposit. So some spending, some saving.
And yes, my 4 yr. old wrote out the deposit slip writing his first name and the "20." It was very exciting for him.

My daughter is now 6 so I have gone ahead and explained the concepts of an "interest bearing account" to her, and she likes to see and read her quarterly statements showing how she made extra free money simply by storing it outside of our home.

Also - when I sit down to pay the bills, I often show her the APS and SWGas bills, cell phone, etc. She's learned how to read the charge, we talk about how the check is written, how that paper gives "permission" to pull that money out of my bank account to pay the company, etc. This helps her better see why she has to turn off her bathroom light before leaving for school!

In terms of higher level stuff...I know my baby brother was doing some investing (putting some money into a CD for example) by junior high.

In summary - I don't think there is a magic age to start banking. I believe you just expose them to what they seem capable of absorbing...all along.

Happy2BMommy, is a stay-at-home mom who just turned 40 (argh!) with a 7 yr. old daughter and a 5 yr. old son, and is a discussion leader for arizonamoms.com living in Scottsdale.

I agree! We opened a 529 savings account for our baby when she was 3 months old. The nice thing about 529's is that if you go with one of the 3 state-sponsored plans, up to $1,500 (per year) is deductible (new in 2008)!! Here's a link with more information...

www.az529.gov

We went with Fidelity, but all 3 plans look pretty good to me. I think it's also an awesome idea to open a basic savings account for our kids, we'll do that in a few months.

(I forgot to add...the 529 accounts are investments in mutual funds, so they can lose money. Just something to keep in mind.)

http://www.phxgrocerydeals.com

My son also has a custodial account of money that relatives spent ( and a few shares of stock).

But I don't think that's what the writer was referring to. This custodial account is really for his money, but he doesn't know anything about it. I think she was asking when is a good time to start teaching about proper money management.

My son is 2.5yrs, and I think that's too young. He doesn't really get the connection between money and things yet, and he doesn't understand the difference between the coins. I think you need a better understanding of math (being able to count past 25 and being able to understand that the value of a dime is the same as the value of 2 nickels).

My mother opened a passbook savings account for me at 6, and I put birthday and holiday money in it. My brother was 9. She opened his first, and mine the next week because she saw how interested I was in it and thought I would understand it. It was a really good thing for me too, as I was able to buy a bike at 10, and always had my own money to buy things I really wanted. And I really liked not having to ask for money. And because it was MY money, I developed comparative shopping skills really young (for example, that bike at 10, the store would assemble it for you for $10, but I figured that I could assemble it myself, and I did, with my father showing me how to use hand tools properly. So I got to spend $10 less, got an intro to using tools properly, and had bonding time with my Dad. Not too bad)

That seems the general range that beginning a financial discussion would be good, somewhere between 5 and 10 depending on how interested the kid was and how well he understood the concept of money.

But just like with sex ed, it's not a one time discussion. You need to keep adding information as the child is old enough to understand it. For example, no 6yr old is going to understand stock volitility, so save that for later.

We opened a saving account for my son when he was five, using some birthday money he received. we don't really use it though - he likes the good old-fashioned piggy bank. but we talk about the importance of saving for things he wants and the cost of things our family needs (food, clothes, etc).

Susie is a discussion leader in the east valley for arizonamoms.com. She has two sons, ages 7 and 3.

Even if relatives are socking away "real" money for your child, I think that it's a great idea to set up a savings account at age 5-6. The bank might require an initial deposit, but just setting the expectation that at least 1/2 of allowance and earned money gets deposited in savings will set your kid up. It will also help him/her get a better credit rating when s/he buys a car, gets a student loan, gets a credit card, and buys a house. I so wish my parents had done this for me.

I think 5 or 6 years old is a good age to start a savings account for a child with his/her own money. They are learning to count in school and are beginning to understand the value of what each denomination of each coin means.

Plus, it's pretty special when they can pull out their OWN money to spend on something important to them on vacation. :)

Lisa_SchneiderCipriano is a discussion leader in the North, North very tip of Phoenix for arizonamoms.com. She has 6 year old triplets.

As far as my children's own personal savings accounts and 529's for college...those were pretty much opened the day after they were born...It's never to early to start to save for their college!

Lisa_SchneiderCipriano is a discussion leader in the North, North very tip of Phoenix for arizonamoms.com. She has 6 year old triplets.

I have a savings account for my daughter, and I teach her about saving and how much things costs, and remind her that there are taxes involved. I think she needs to see that she cant buy everything.

discussion leader, mom of an 11 year old girl. At this time, she is trying to make it work between raising her and having a full time job!

About 7 years of age is when my kids opened a savings account. Two years later we began talking to them about different investments and mutual funds. Safe verses a bit more risky funds and the returns. By age 10 they had an investment account at Fidelity with the money they saved. Together we picked out funds to be invested in. They receive a monthly statement. Have them open a monthly statement and ask what they made in the last month. It is usually around $80 per month for each child. Then ask them what they did to earn that money. The answer of "nothing" is a very powerful lesson on money!

soccermom of a 12 yr old boy and 15 yr old young lady

I got to do a "girl's night out" with my sister-in-law and niece night before last in southern California, and the topic of credit cards came up. She'll be in her junior year of college next year, so she's getting offers right and left.

Luckily, she's willing to learn from my mistakes. She's going to sit down with her Dad and choose one card -- the one with the most favorable terms. She's not going to charge more than she can pay by the end of the month.

She's lucky; her folks started saving before their kids even started school, so she doesn't have any student loans.

I sure wish someone had taught me how to handle credit when I was a young adult.