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My child already has a savings account at a bank? How do
I tie that in with KidsSave™? Tying both a regular savings account and a KidsSave
Account together is easy. It will require a little due diligence on your
part, once a month at the most, just to make sure both accounts remain synced
up. But it's a simple thing to do.
First, we recommend that when you create your child's KidsSave
Account, the opening balance you enter should reflect the current balance of
their regular savings account. This is important for several reasons.
One is that when your child experiments with different
What If? scenarios
the results that get played out are directly related to their actual savings.
Also, if you choose to give your child interest in their KidsSave
Account, the interest should reflect their entire balance, not just the little
they would have accumulated if their savings balance was not included.
And, finally, it is much more exciting for kids to watch their actual real money
at work...all of it...when they enter their KidsSave
Account.
Next, when your child receives money in cash or
check form, simply have him "KidsSave-It" by
depositing it in his KidsSave Account. You can
keep the cash or deposit it into his regular savings
account. Either way, at the end of the month
when his savings statement comes in, you will take a
few minutes to reconcile the Accounts. If you
kept the money yourself, you will need to pay up by
transferring it from your account into his.
This is easy to do if you do on-line banking.
If the money was deposited into his savings account
when he received it, then you'll only have to square
with any allowance, interest, etc. that was
automatically deposited by KidsSave.
The same happens when your child needs to make a
withdrawal. She "KidsSaves-It" by making a
withdrawal from her KidsSave Account. Then you
can give her the money from your wallet or she
withdraws it from her bank account. When her
bank statement comes in and you reconcile the
accounts, it all evens out.
It's a pretty easy process and once you get the hang of it, it should only
take a minute or two. We've
described it in further detail for you under
How do I reconcile my child's KidsSave
Account with his/her real bank savings account?
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