Every parent wants the best for their kids, even as their grow into their teenage years and part of this is teaching them financial literacy. Opening a savings account for your teenager does not automatically mean that they would become financially literate, even as a parent you learn something new often but this account does set them early on the part to being financially literate young adults. There doesn’t seem to be a better time to learn about finances than in a recession but it is even more crucial to teach the next generation to understand finances and how to manage their money.
Adults with appropriate financial literacy knowledge make better financial decisions and manage money better than those without such understanding. Understanding basic financial concepts teaches people to navigate the financial system and starting early with a savings account is an excellent way to give your kin hands-on experience with money.
Savings Account for Teenagers
Setting up a savings account for your teenager is a solid step which guarantees that they have first-hand experience with managing money and as adults they would most likely have better personal resources. As a parent, making your teens part of financial decisions can also improve their sense of responsibility as well as make them more conscious of how finances are part of our daily lives. Need more convincing? Here are 5 reasons you should open a savings account for your teenager.
1. To teach them how to save: Learning to save is not as simple as knowing what percentage of your income to set aside, discipline is also a significant part of being a good saver as saving is a step before investing your money. When your teen has a savings account, it is easier to then guide them on what having a savings goal is and why and when you should have one, while encouraging their discipline in saving money (teaching by example is crucial). Some banks have accounts aimed at young teens with close to no account charges and saving incentives that help their money grow.
2. Encourages independence: When teens own a savings account, they start to feel a greater sense of responsibility in the way they spend money especially those who earn money through side jobs or allowances. Teenagers are constantly in a hurry to grow up and so owning an account that they can control can satisfy a deep need to be more accepted as adults (they’ll find out sooner or later that ‘adulting’ is a trap).
3. They learn financial literacy: Understanding money or how it works isn’t easy at any age but starting early is one way to ensure your kid doesn’t become wasteful as an adult. According to research, families are the single most influential factor in learning about money. A great joy as a parent is setting up your kids with as many tools as they need to navigate life that they don’t have to depend on you as adults. In setting up a savings account for your teen, you are on the right path to helping your child become a financially responsible adult.
4. They learn delayed gratification: By owning a savings account, your teenagers learn to save for a rainy day thereby delaying their impulse to buy any and everything just because they have money in an account. Teaching your teens to wait for something they really want can encourage them to learn delayed gratification. Studies show that delayed gratification is one of the most effective personal traits of successful people, being able to delay gratification leads to better success later in life. A fixed deposit account might be an even better option for you to explore if delayed gratification is a lesson your child really needs to learn.
5. They learn that money has value: At this point in your home, you may be tired of shouting ‘do you think money grows on trees??’. That is understandable when your kin are a tad bit wasteful and are not conscious or even aware of the source of resources in your home. A teen’s savings account is perfect way to teach them that money is exhaustible and is often not easily replenished; they will start to see that money is a limited resource and needs to be managed properly.
UBA Teens Account Opening Requirements
The UBA Teens Account is for teenagers between the ages of 13 – 17 years. This account is available in two variants – Full and Lite.
|Account Information||Teen||Teen Lite|
|Child’s birth certificate or international passport.||✓||✓|
|One passport photograph each of parent/guardian and child.||✓||✓|
|Parent’s valid ID ( driver’s license, international passport or voter’s card)||✓|
|Utility bill within 3 months of account opening date.||✓|
Benefits of UBA Teens Account
- Earn 13th month reward, which is 10% of the monthly savings plan with a minimum account balance of ₦5,000 for 12 consecutive months.
- A chance to partake in the scholarship scheme through a raffle draw having maintained a minimum account balance of ₦10,000 for 6 consecutive months.
- Personalized debit card at a 50% discount (only first issuance).
- Internship opportunity at UBA.
- Annual interest of 1.15% (payable monthly).