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Basic banking processes you can teach your kids

RBL Bank Dec 28, 2019

Most adults are familiar with common banking processes. However, the same can’t be said about kids. For children to imbibe financial discipline, essential for addressing life goals, it’s important for them to be familiar with the basic banking exercises.

This article focuses on some simple yet essential banking operations, which you can teach your kids that will help them later in life.

1. Opening a savings account:

Every bank offers a savings account where you can deposit and withdraw money for various needs. The account offers an interest which differs across banks. You just need a few essential documents pertaining to your identity and address to open a savings account.

There are many banks which offer special savings account for children. You can teach your child how to open a savings account in a bank and the formalities to be completed. This acts the first step in the world of finance for your child. The process helps your child later when he/she might need to open an independent account during college.

2. Depositing money:

This is another basic but essential banking operation which you need to teach your child. Today, in the age of ATMs, most children believe that swiping a card in the ATM machine dispenses cash. It’s a common notion among children that the ATM throws up cash every time a card is swiped.

However, only when they deposit money, they would know that the money dispensed is the amount from their account. This helps them be more responsible with their finances and curb binge spending. Learning the art of depositing money would help your child know where to put the money received as gifts.

3. Withdrawing money and updating passbook:

Apart from depositing money, it’s vital for kids to know the art of withdrawing money. Teach your child the basics of writing a cheque and using a debit card. Cheques serve the purpose when you need to withdraw a bigger amount. On the other hand, for small withdrawals ATMs are handy.

At the same time, teach your child how to update passbook and look at the entries closely. This will give your child an idea about cash flow. Regular monitoring of passbook entries is crucial to understand the movement of money in and out from the account.

4. Net banking:

In the digital age, the importance of net banking can’t be emphasised enough. Net banking helps in transferring funds, paying for utilities, set up ECS mandates among others. With the Government striving for a cashless economy, net banking will get greater traction in the days to come.

Equipping your child with the skills of net banking would come handy when your child needs to make digital transaction. It would also foster a sense of responsibility and care while dealing with money matters in the online world. Equipping your child with these banking processes help in dealing with financial matters with a lot of ease when the need arises. It helps one to become more confident while handling money and making crucial decisions.

Disclaimer: Articles published on the website are merely indicative and suggestive in nature and do not amount to solicitation. The contents do not guarantee the desired returns and/or results. Reader is advised to exercise discretion and consult independent advisors for achieving desired result. Visitors to this blog/ website w.r.t products & services offered by RBL Bank Limited herein, shall ensure that the comments / feedback posted shall be restricted to the contents published herein and shall not contain such language that may be un-parliamentary or against any religion, caste, section of society, political view etc. While our endeavor is to publish the comments that are submitted, however, all comments/feedback shall be subject to internal review by RBL Bank Limited. We do not guarantee that the comments that are submitted will be published.

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