Undoubtedly, in today’s world, the best gift you can give your children is to teach them about money at an early age, as it fosters financial literacy, empowering them to make informed decisions about their finances.
According to Angela Mwirigi, a financial expert, the first step to achieving financial freedom for kids is to engage them and understand what goal, whether short-term or long-term, they yearn to achieve.
This helps the parents to advise them accordingly on how to achieve the goals, including setting up a budget, saving, and learning the value of money.
Additionally, having a goal enables the children to put in extra effort to achieve it and avoid splurges on unnecessary items that may prolong the period of accomplishing their aim.
After identifying the goal, the next step is to open a savings account to teach them how to handle money.
Ms. Mwirigi says showing them the basics such as how to budget, spend and save will establish good money habits for life.
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“Opening a children’s saving account is among the best gifts you can give your child. Showing them the balance every time you deposit their ‘hard earned’ savings will give them even more joy because it instills in them a sense of pride that forms part of the journey they have made,” she adds.
The Cooperative Bank of Kenya Jumbo Junior Account is one of the best children’s accounts that has been hailed for making children responsible and disciplined in handling money.
As the lender puts it, the Jumbo Junior transactional account is the big bank account for little people below the age of 18 years.
The account provides an automatic membership to the Jumbo Junior Club, which entitles one to free ele-bank on opening a new account.
Additionally, subscribed kids enjoy free birthday card on their birthday anniversary and discounted bank cheques for fee payment. The interest is payable at 3 percent.
The requirements to open a Jumbo Junior Account include a parent’s or guardian’s original ID Card and a copy, a copy of birth certificate of the child, and a copy of KRA PIN.
The minimum opening/operating balance is Sh500.
