Any person who recently graduated college or plans to attend in the near future will tell you that earning a degree is not getting any cheaper. While there are thousands of scholarships and programs to help drive down the cost of college, it's still extremely helpful to have some money saved up.
That's why so many grandparents are opening savings accounts for their grandchildren at earlier ages. Having a small savings built up from the time children enter the world to when they move into college dorms can really be beneficial. However, before you get started on a new savings account for your grandchild, here are a few tips to follow:
Plan on joint ownership for the account
When you're starting a savings account, you should make sure to set up joint ownership so someone is responsible for any fees or signatures for the account. Infants aren't accountable for any banking fees or signatures, so planning on joint ownership is the best plan.
Having said that, you must decide whether you want to be in charge of the account or if you want the parent to have control of the money as well. This all depends on the amount of trust you have in the parents, as they will have access to the savings account at any time.
Collect important documents
Before you visit the bank, you need to make sure you have all the proper documentation for the savings account. You will need to have your grandchild's Social Security number and your own personal information as well. If you plan on allowing a joint ownership of the savings account, you might want to get that person to come into the bank with his or her proper documents help streamline the process. Additionally, if the child does not have a Social Security number yet, you should encourage the parents to get started on acquiring one immediately.
Come in and visit us
One of the best ways to open a savings account is to come into one of our branch offices and speak with a talented representative. It's important that you are able to know all the benefits of starting a savings account for your grandchild and what services we can offer you as you begin your savings.
Determine the amount of funds
Whether you plan to add a single lump sum of money to your grandchild's savings account or if you want to add monthly installments, it's best to decide this earlier rather than later. Making this decision will help you budget your own bank accounts, so you aren't blindsided by needing to add funds to your grandchild's savings account when you don't have the budgeted money.
Speaking with one of our representatives can help you determine how you will add funds and if it will be easier to do so online through Internet banking.
For more information about smart ways to manage your finances, contact Landmark Bank.
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