Teaching children the importance of money helps them to learn the basics of money management and is essential for their future financial security.

One good way to get your child into the habit of saving from a young age, is to help them understand how money works, and save for their future  by opening a children's savings account. By regularly depositing money into it and watching their balance grow, children can see the benefits and rewards of setting financial goals. 

According to research from Janus Henderson Investment Trusts [1], more than seven in 10 parents (72%) who have children under 18 regularly save money towards their child’s future. But many parents who save for their children tend to put cash in their own savings accounts rather than one specifically for a child.

This means children often miss out on the higher interest paid on junior savings products along with the sense of ownership  with the account being theirs. With the cost of living crisis and affordability concerns now also starting to affect the amount of money parents can save for their children, it’s important to understand what steps you can take to make sure you choose the right savings account for your child and protect their financial future. 

Finally, setting clear goals and knowing the reason why, and for what they are saving is essential as this will help pick the right account and help your child lay the foundations to build their financial future. These could be:

• to help your child learn more about money and finance
• to help your child develop the habit of saving money gifted to them or earned from an allowance, chores or part-time job
• to save money for a specific financial goal or for a car or university once they are older. 

At Coventry Building Society, a children’s account can be opened for as little as £1, helping your child learn positive saving and spending habits. 

Coventry Building Society’s Young Saver is specifically designed for children aged from 7 to 17. It helps them learn how to save and manage their money through engaging financial education workbooks and rewards as they save. Up to £200 can be paid into the Young Saver account each month, while the easy access means the child who owns the account can take money out whenever they need to. 

If you want to save for your child’s future, Coventry Building Society has a Junior Cash ISA, funds can be added whenever you wish and are locked away until the child reaches 18. If your child is under 16 years of age you will need to open the account with them. Tax-free interest is paid annually on the account which, again, can be opened with as little as £1. A maximum of £9,000 can be paid into the account each year.