At Drake Bank, we believe that financial literacy is an important foundation block for our clients. Understanding how to manage money from an early age is crucial; our team is committed to providing parents and children with the tools they need to build a strong financial foundation.
Our consumer banking experts, Janet Alland, senior vice president of retail banking, and Annmarie Becker, vice president of relationship banking, weighed in on this topic. With over 40 years of banking experience, they’ve seen how early financial education can build a better future for children.
What motivated you to promote opening accounts for children at Drake Bank?
Alland: I’ve seen firsthand how financial literacy can make a huge difference in someone’s life. Teaching kids about money early on equips them with the skills they need to make sound financial decisions in the future. By introducing children to banking at a young age, we’re giving them a head start in learning how money works and the importance of saving and managing their finances responsibly.
Becker: I’ve witnessed many parents delay opening accounts for their kids because they believe it’s something to consider later on. However, starting at an early age helps children develop a savings habit and allows them to set and work towards financial goals.
What types of accounts or products does Drake Bank offer for children?
Alland: We have a variety of financial products designed specifically for children. The Little Drake Savings Account is an excellent starter account for young children, offering a simple way for them to learn about saving money. As they grow older, products like our Free Checking Account or Certificates of Deposit (CDs) can be more suitable, providing them with a better understanding of long-term savings.
Becker: Additionally, we provide IRAs (Individual Retirement Accounts), which can be started early to teach the importance of long-term financial planning.
How does opening an account impact a child’s understanding of money?
Alland: Opening a bank account for a child at a young age is like planting a seed that will grow over time. It teaches them about the basics of money management—how to save, how to budget, and how interest works. More importantly, it gives them a sense of responsibility and control over their finances early on.
Becker: It’s about building confidence. When children see their savings grow, they understand that their efforts have tangible results, which can help encourage them to set goals. Whether it’s saving for a bike or contributing towards their education, these early lessons are invaluable.
What resources or programs does Drake Bank offer to support financial education?
Becker: We can provide one-on-one mentoring sessions where our bankers can directly interact with children and their families, explaining financial concepts in an age-appropriate manner and learning what will work best for them.
What common misconceptions have you seen related to banking for children?
Alland: A common misconception is that children can’t have a bank account until they are much older. An early start gives children more time to learn about money and develop good financial habits.
Becker: Another misconception is that managing a child’s account is complicated or risky. We provide parents with the necessary tools to control the account while still allowing the child to learn and experience the impact of their financial decisions. It’s a safe and structured way to teach kids about money while being able to supervise the accounts.
What other tips or advice would you offer parents when considering opening an account for their child?
Alland: Start early. The sooner you introduce your child to banking, the more time they have to learn and grow. Encourage setting small savings goals and take time to celebrate their progress; positive reinforcement goes a long way in building good financial habits.
Becker: Don’t hesitate to involve your child in the process. Come in for a one-on-one session with us where we can explain everything to your child. Remember, it’s not only about saving money; it’s about educating and empowering them to manage their finances wisely.
By opening an account for your child, you’re not just saving for their future—you’re teaching them invaluable skills that will last a lifetime. From the Little Drake Savings Account to IRAs, we have the products and resources to support your child’s financial future. Visit drake-bank.com or stop by the Bank to learn more about how we can help build a better future for you and your child.
