“Ewura, say thank you to Aunty for the money. I will keep it in the susu box for you ok”. Days later, baby girl will ask for a toy and I will respond with I don’t have money now and her response will be “ but what about the money Aunty gave me the last time”; Oh that money, mommy used it, I will buy your toy later ok, I promise and pray she forgets about said toy.
How many times has this scene played out between you and your little one? It’s time we stop spending the small small monies these little ones receive as gifts. Honestly, we never pay back, no need to lie. And don’t say but you are taking care of them, abeg, they no send you make you born them either.
I dillydallied on opening my daughter’s account, spent the money so many times, used one of my other accounts to save in her name but always ended up spending that one too, till I decided to stop lying to myself, walked into Ecobank and opened a trust account for her.
WHAT IS A TRUST ACCOUNT?
A Trust account is simply an account opened on behalf of someone, usually a minor ( any person below 18years), and managed by either a parent or designated trustee for a period of time, when the child is of legal age or an agreed period/term.
The account can be for cash or assets and the one entrusted with the account is mandated to make good financial decisions on behalf of the child.
The account is normally opened as a joint account, with the adult being signatory to the account till the child is of age. You can decide to only make deposits, no withdrawals , with an investment attached or just accumulate the funds for a while before investing in any area of your choice.
We will discuss investment next time.
In Ghana, most banks have Kiddy Accounts, and opening an account takes just a few minutes.
You will need:
2 Passport Pictures each
Birth Certificate of the child
Utility bill
And Ghana Card/ ID card of the parent or trustee
Most Banks also have beautiful packages for the children such as free piggy banks, school supply, laptops, and for the parent - loans to assist with school fees when in need, Insurance packages, etc.
Advantages of Opening a Kiddy Account:
1- Savings for the child
2- Investment for college or school fees
3- Higher interest rate: Most banks offer higher interest rates to Kiddy Account holders
4- A nice nest egg for the future.
5- Tool to teach your child good money management
6- The money is not easily accessible: you can easily break open a piggy bank or susu box but you will need to drive to the bank to withdraw the money as some banks don't give ATM cards for trust accounts, and the ones that do, have a strict withdrawal limit.
7- Some accounts come with insurance packages such as life policy for you and the child, education policy, etc.
Overall, having a savings account for your child is a very good investment for the future. Remember, little drops of water make a mighty ocean.
photo credit: Pexel.com - Alesia Kozik and Kristina Paukshtite
