Financial Learning Center
Kids' Banking 101
It's never too early to learn about money and the importance of financial responsibility. Strong financial values now can lead to high dividends later on in life. Use the information below to teach your children the basics of banking.
A checking account is the most common type of bank account there is, and is usually the bank account people use the most to pay their bills. Unlike a savings account where money sits and collects interest, a checking account is like a place where you keep money you intend to spend.
Checking accounts use paper checks and debit cards to draw money from the account. These methods allow you to buy stuff without using cash. However, this comes with the responsibility of keeping a very accurate record of all the checks you've written and debit card purchases you've made. If you're not careful, you can spend more than you have in the account, and the bank may not allow the purchase, or worse, charge you an overdraft fee.
It takes money to pay for the things you want. One way to make sure you always have money is to start saving a part of the money you receive. Whether it's your allowance, or birthday or holiday gift money, saving a piece of what you receive is a great way to make sure that you have money set aside for that extra-special thing you really, really want.
When you put your money into a savings account at the bank, it will be kept in a safe, or vault, to keep it protected from fire, bank robbers and other dangers. It will also be insured, so if anything did happen to it, you will still have your money available. Even better, money in a savings account will earn additional money called interest. One of the ways banks make money is by charging people to borrow money. The money that the bank charges is also called interest. The interest rate is the percentage of the amount of money being borrowed. The money that the bank lends comes out of the savings account people have with the bank (including yours). When banks use your money, the pay interest for the money they are borrowing from you.
The longer you keep your money in a savings account, and the more money you put in, the more interest you will earn.
Burke & Herbert Bank Kids' Savings Account
Burke & Herbert Bank's Kids' Savings Account makes banking for children fun by offering them incentives for good financial behavior, such as Runyon Bucks Rewards and birthday surprises. With as little as $10 to open (that's only a couple of visits from the tooth fairy) and no monthly fees, we make it easy for them to get started. And with Online Banking, it's easy for you to keep track of their savings.
Here's how it works:
When your children (17 & under) open a Kids' Savings Account, they automatically will be a part of our Kids' Savings Club. As a Club member, they will receive a Runyon Buck Reward for every $25 they deposit. The Runyon Buck Rewards are then entered into a quarterly drawing for a chance to win great prizes.* Kids' Club members also enjoy special treats such as birthday surprises.
The Burke & Herbert Bank Reloadable Cash Card
Another great way to teach children financial responsibility is with a Burke & Herbert Bank reloadable Cash Card. For your young ones, think of it as the card with training wheels. The Cash Card is an ideal solution for children and young teens who are just starting their financial life. It's a great way to give your kids a real-world introduction on how to manage money responsibly. Your kids will even get a monthly eStatement "for their records" to track expenses. We made the Cash Card easy and convenient for you as well. Whether you're reloading their allowances, rewarding them for good grades or giving them a little extra cash just because, you can reload the card easily as many times as you like for free online or at any branch.
Visit a local Burke & Herbert Bank branch or call us at 703-684-1655 to learn more.
*Prizes are awarded by random drawing from entries of Runyon Buck Rewards. Odds of winning depend on number of entries. A Runyon Buck Reward is awarded for each $25 deposit made into a Burke & Herbert Kids' Savings account. No purchases or transactions necessary. A Runyon Buck entry may also be received by sending your name, address and phone number to Runyon Rewards, P.O. Box 268, Alexandria, VA 22313. Only one mail-in entry allowed per person. Need not be present to win. Prizes are awarded to the adult custodian on the account.