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Kids with bank accounts are more likely to have a greater chance of improving their overall well being compared to kids without banks accounts, research has shown.
Savings accumulated through kids bank accounts not only help the children build a stock of resources that enable future investments such as continuing education or buying a home; but also enhance the psychological well being of the child in that, the child is able to adopt a more hopeful outlook on the future.
A study on the effects of bank accounts on children in Uganda showed that kids with bank accounts not only saved more, but also had inspirations for the future.
Carried out through an intervention called SEED Uganda, the research involved some orphaned adolescents being given bank account in their own name while others were not.
A year later, the researchers measured changes in the attitudes of both groups, and found that the adolescents who were given bank accounts had improved both their HIV prevention attitudes and educational plans, while those that were not given bank accounts had decreased scores in the same measures.
Generally, banks offer savings accounts for children up to age 18; with the control of the account being by the parent until the child reaches 18.
The banks give the kids animal-shaped saving boxes that come in different names in Kenyan banks, such as piggy bank, Ele bank, or hippo bank, for kids to collect coins at home.
The accounts also come in different names such as  Cub account for KCB Mdosi Junior for Family Bank, Super junior for Equity Bank , Young Movers for NIC bank , Pebble for Chase Bank and or Junior Eagle account for Barclays among others; but all with the same principle of instilling a saving culture in the kids.
Some of the common features amount the kids’ bank accounts include limited withdrawals, interest on deposits, free or discounted bankers cheques for the parents and fun days for the account holders.
Besides fostering saving at an early age, opening bank accounts for kids also integrate them into formal financial systems and help improve their financial literacy, enabling them to become responsible adults who can make informed financial decisions.
The Seed Uganda research showed that those kids who were given bank accounts were able to save an amount of money enough to cover a student’s post-primary education for two years; through contributions from both family and friends.
Children’s bank accounts also provide the kids with a stock of fund to use once they reach adulthood for such purposes as helping to fund additional education or buying a home; thereby improving economic self-sufficiency and stability.
Opening a bank account in any of the Kenyan banks is easy, requiring just proof of identity such as the child’s birth certificate and opening balance with the latter varying from bank to bank;from as little as Sh200.
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