A recent article in the Journal of Financial Counseling & Planning, “The Independent Effects of Savings Accounts in Children’s Names on Their Savings Outcomes in Young Adulthood” (T. Friedline) showed that kids who had a savings account in their name as children tended to save more money and were more likely to have their own savings account when they were in their early 20’s.
Several cities have started local programs whereby kindergarteners are all given savings accounts. San Francisco has the K2C program where all kindergarteners in the city get savings accounts with an initial deposit of $50 put in them. They will also match dollar for dollar up to $100. Cleveland, Ohio currently provides a similar program. These early savings accounts can help children develop strong saving habits down the road.
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