4 Practical Ways To Save Money For Your Kid

20 Nov

Every parent or caregiver wants to provide the best for their children, especially when planning for their future. Whether you’re saving for their education, their first car, or helping them buy a house one day, starting early can make a huge difference.

In Australia, the cost of living continues to rise, making it even more important to have a plan in place to secure your children’s financial well-being. Here are some practical ways to start saving for your kids’ future!

Overview:

How to save money for kids:

Open a savings account
Earn interest in a fixed-term deposit
Set your kids up with a bank account
Give young people practical support to learn about money

How to save money for kids

1. Open a Savings account

One of the simplest ways to save for your child's future is by opening a savings account in your own name and setting aside money specifically for them. Over the years, these savings can grow and be used to support your child when they're ready.

Easy to set up: You don’t need to open a special account; just use a regular savings account in your name.
Builds steadily: By adding money regularly, even small amounts, you can grow a decent sum over time. By following our helpful tips to save money, you can watch the account grow steadily over time.
For any future need: Whether it’s for education, a first car, or other big expenses, this money will be there when your child needs it.

How to start:

Open a regular savings account at your bank or credit union.
Set up automatic transfers or add money whenever you can.
Once your child is older, you can give them the money for their future expenses.

This option allows parents to save money for their child’s future without any complicated steps.

2. Earn interest in a fixed-term deposit

Once the savings account reaches a balance of $5,000 and the funds won’t be required for between two months to three years, a fixed-term deposit enables you to earn higher interest for the period of the fixed term.

A fixed term deposit is a great way to earn a higher interest rate on the sum held, and it’s perfect for parents who know the sum put aside is for a specific future date. Fixed term deposits are a good way to grow savings towards a high school or tertiary education when children are young, or towards their first car or even a home deposit.

3. Set your kids up with an bank account

Many financial institutions, including Broken Hill Bank, offer kids savings accounts specifically designed to help them with independence. These accounts usually come with low fees and higher interest rates, making them ideal for growing your child’s savings.

Educational value: It teaches children the importance of saving and managing money from an early age.
Higher interest rates: These accounts often offer better rates than regular savings accounts.

Our Youth & Kids accounts are designed to grow with your children, starting with the “Busy Bee” account, for ages 0-11, where you can deposit money but not withdraw, enabling you to watch the savings grow for your youngster.

4. Give young people practical support to learn about money

As kids finish primary school and enter high school, it’s time to start reinforcing their knowledge about the importance of sound money management. Perhaps your kid is thinking about getting their first after-school job or even just saving up pocket money and birthday money for something big — with the right support you can instill sound financial habits in your child during these formative years.

The Super Youth saver account is just for kids who are 12-17 years old. During these years, kids tend to gain a little more independence and start learning how to manage (and even earn!) their money.

If your child has a Busy Bee account they will be automatically upgraded to a Super Youth Saver when they turn 12 years old. There are lots of benefits of this account, like access to the Broken Hill Bank app, a Visa Debit card and the ability to set and track savings goals to help you teach your child about money.

How do I open a bank account for my child with Broken Hill Bank?

Setting up a bank account for your child is simple — just get in touch with our friendly staff. You will need some identification, usually your child’s birth certificate, to get started.

Visit or phone Broken Hill Bank and ask about opening a Busy Bee or Super Youth Saver account.
Some accounts allow you to make regular deposits or one-off contributions.
Encourage your child to set aside a portion of any pocket money or birthday gifts to help build their savings.

It’s never too soon to start saving money for kids — whether you want to fund their education or help with a home deposit, you can begin today!

Planning for your child’s financial future is one of the best investments you can make. Whether it’s through opening a dedicated savings account or a fixed-term deposit, there are plenty of options to help set them up for success.

FAQs

How old does my child have to be to open their own savings account?

At Broken Hill Bank, you can open a kids' savings account as early as birth. It’s a great way to start building financial security for their future.

When they’re old enough to understand, this account can also serve as a valuable tool to teach them about responsible saving and money management.

Are savings accounts a good option for long-term goals?

With the right high-interest savings account, you can steadily grow your funds over time with minimal risk. While returns may be lower compared to other investments, a good savings account offers stability and security, making it a reliable option for long-term financial goals.

What’s the best way to plan for my kid’s financial future?

A financial planner can help you identify the best ways to build wealth and save for your kids' future. Broken Hill Bank partners with Bridges, a financial planning organisation who can offer professional advice specific to your situation and needs.