More and more, parents want their children to stop using cash. Banks offer banking services for children, from savings to credit card, safer than the bank note in hand.
The means of payment are becoming more and more electronic.
With the increasing importance of the Internet in everyday life, it is difficult to dispense with a bank card. You can manage your bank accounts via the Internet or make purchases. But one of the most Internet-consuming populations, children, is also one of the most ignored by banks and their electronic means of payment. Grandma’s bank note is nice, but iTunes only takes the bank card, how to pay for an mp3 download?
We see, very quickly, the “problem” of money arises, when one has children. How to manage the report to the money that minors burden to adults? The state regulates exactly what it is possible to do in banking for a child, which does not prevent the banks to offer banking services adapted to their young customers, whether it is a savings account or a bank card.
The Young Booklet is advantageous:
It is practically a paid current account! But everything has an end, and at the age of 25, the young person will have to close his bank account. Before opening a young booklet, it is advisable to go around the banks, their fees and remunerations can change a lot from one bank to another! In addition, it can be used to explain to the child the comparison of the advantages and disadvantages of different bank accounts for young people that will be proposed.
Livret A : This is the most popular savings account, it exists since 1818. 4 French out of 5 are holders. Interest rates are regulated, and this savings is tax-free.
The livret A is capped, we can not have more than 22950 euros: we must not forget that it is an account helped by the state. For the same reason, a natural person can only have one booklet A. Beyond the ceiling of booklet A, there are other booklets, more adapted.
Bank account for children over 16
The age of 16 is a vital turning point in a young person’s life, with new rights. The most obvious is probably the right to work, and therefore to earn money. But a salary, money earned during a summer job, is better when it is deposited in a bank account, account that will allow the young person to spend his money (almost) as he sees fit.
Current account for minor
When the minor is 16, he can finally open a real checking account, which allows him to have a checkbook and a payment card. This new account needs the agreement of the parents, who must be surety for their child. Indeed, if the minor’s current account is found in the open, the parents may have to settle the debt of their minor child. It’s the same thing if the minor makes checks without provisions. We see the importance of a good education of the child vis-à-vis money.
Booklet A for minor
When the minor turns 16, he or she can, unlike the current account, open a Livret A book without his parents. The Livret A can never become a debtor, and therefore does not need the parental guarantee. risk for the bank being almost zero.
Phobia of lack of money.
The children’s bank account is also a very convenient way for parents to deposit money received for birthdays, Christmas, etc. It is a piggy bank of sorts, but has the huge advantage of:
- Generate interest
- To dissuade parents from “banging” too fast in the piggy bank of the little ones in case of occasional worries of money
- To not have to break the little pig.
All CAF children’s aids
- Aids for large families
- Send your business to your child
- How to pay for higher education
Children can have savings, to spend thanks to a credit card.
The relationship of children to money will be the adult of tomorrow. If he is given too much, he may be spoiled and not give value to work, if he is not given enough he may be embittered and not know how to enjoy life.
By allowing his child to have a credit card, I see only benefits. On the one hand, the child feels valued and responsible, he has a bank card as his parents. On the other hand, as a parent, we keep track of his expenses by watching the movements on the account, and we are reassured for his safety: it is more difficult to racket the credit card of a child than the small ticket bank in his pocket.
Managing minors’ pocket money is not easy, and banks know it. Banks are increasingly aggressive at the commercial and advertising levels, trying to capture new customers. They adapt their offers to minors, but that does not mean that a minor can make a loan.