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Teach children to save money. Mimi Haddon/Lifesize/Getty Images
It's never too early to teach kids about saving and investing. Some financial institutions offers special accounts for children, which go above and beyond the standard Uniform Transfer/Gift to Minors or Coverdell educational accounts that parents often open. These mutual fund or savings accounts may include financial educational components, featuring age-appropriate materials.
Monetta Young Investor Fund
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This kid-themed fund can be started with just $100. About half of all assets are in stock index funds and exchange traded funds, with the remainder in large cap stocks. The fund also features opportunities for kids to win prizes by playing financially-themed games, such as the stock market game Run with the Bulls. When parents open an account, kids receive a financial kit, including a CD on money set to music and an activity book.
Bank of America
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Open a Custodial/UTMA Savings Account for Youth with no monthly maintenance fee, starting with $25. The low minimums make it a good vehicle for kids to save allowances, babysitting money and other funds. This can teach children to save for an item they've been coveting. Kids don't have access to the funds until they reach 18 or 21, depending on the state rules where you live, but guardians may withdraw for them. Three monthly withdrawals are free with fees waived for more withdrawals if a minimum balance is met.
USAA First Start Program
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The USAA First Start Program offers various vehicles to teach kids the financial facts of life. Its First Start Savings lets kids open accounts with just $25. Its checking program for teenagers features no monthly balance or fees, free ATM use with refunds of outside bank fees and a debit card. The First Start Growth program introduces children to mutual fund investing with just a $20 minimum investment. USAA also maintains a website for teens, where they can monitor their accounts and make deposits and transfers with parental approval. Parents may like the free, no-fee USAA Prepaid Card as an alternative for allowances.
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