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Cayman Parent | Articles | Expert Advice | Bank Accounts for Children

Bank Accounts for Children

Educating your children on the importance of money from a young age sets the stage for a lifetime of smart money moves. The sooner your child appreciates the value of a dollar, the sooner they will be able to make conscious decisions about spending and saving. Opening a savings account for them is a great first step into the world of financial responsibility. Below are answers to a few important questions you should be asking.

How Soon?

Financial planning is certainly easier before you have children. Some financial planners encourage clients to set aside funds for their unborn children. But do not despair! If your child arrived without a nest egg, there’s no time like the present to start saving. While some parents choose to open their child’s first account at birth, accumulating funds for them until they are able to manage the account with minimal supervision, others tend to get started later. Some banks have saving accounts geared towards families and children ages 17 and under. Others cap the age limit at 19 years old.

What Type?

The Cayman Islands has numerous commercial banks to choose from and each will have specific account plans that are tailored to a variety of needs. Setting up your child’s account at your family bank may appear to be the more seamless option due to your existing relationship; however your bank may not always offer what you need. Before opening an account you should have a clear understanding of what you want to achieve. Are you setting up an account to save for college? If so, Cayman National Bank has a Student Saver account designed to help parents save money for their children’s education. There are also savings accounts to help your child learn about the importance of saving money and Butterfield Bank has an excellent Young Savers Account. Butterfield also offers a more hands-on approach with their Financial Management 101 classes, open to full-time college or university students aged 18 and older. These classes advise on savings strategies, credit management and budgeting techniques designed to give you practical money management skills. Attendees are eligible for a special package of services designed just for students, including a savings account, a Butterfield Debit Card and Credit Card, and access to Butterfield Online Internet and Mobile Banking. Alternatively, Scotiabank has a Primary Savings Junior Account and the Royal Bank of Canada (RBC) has a Leo’s Young Savers Account. These are just a few options on-Island that offer countless benefits to families and young savers.


TOP TIPS FOR OPENING A CHILDREN’s SAVING ACCOUNT



What Will I Need To Open the Account?

Only a few banks stipulate that you are an existing account holder in order to set up an additional account for your child, but nearly all will require the following:

Overseas Banking for Children

Children who go overseas for boarding school need to have a way of accessing money, or paying for things, especially in the case of a delayed flight when they are travelling. If they are over the age of 10 then you can open a local bank account and get them a local debit card, you can try and register them with a bank overseas, or you can get them a GoHenry debit card (if they are in the UK or the USA). The advantage of using a bank in the Cayman Islands is that there is no cost of transferring money between accounts, but there will be exchange rate charges. Always contact your child’s bank before they travel so the account doesn’t get frozen.

A new and much easier way to give your child access to money while they are away is to get them a GoHenry card. In the UK it is linked with Visa and in the USA it is linked with MasterCard. Your child will receive a debit card which is linked to an App and with this you can attach parental controls, track their spending, set spending limits, and upload more money anytime simply by transferring it from your Cayman debit card. It has revolutionised how children have access to money when overseas and completely removes the need to open them an overseas bank account.


 

 
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