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 big dividends later 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. Unlike a savings account – where money is kept until you plan to use it in the future – a checking account is where people keep money that will be used now, for example, to pay bills and buy things.
Checking accounts use paper checks and plastic debit cards to spend money from the account. These methods allow you to buy things without using cash. However, this comes with the responsibility of keeping an 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 portion of the money you receive. Whether it's your allowance, or birthday or holiday gift money, saving some of what you get is a great way to be sure 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 protect it from fire, bank robbers and other dangers. It will also be insured, so if anything does happen, 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 accounts (including yours) that people have with the bank. When banks use your money, they 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 fun for children by offering incentives for good financial behavior, such as quarterly prize drawings 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 kids to get started.* And with Online Banking, it's easy for adults to keep track of their youngsters' savings.
Here's how it works:
When children (17 & under) open a Kids' Savings Account, they automatically will be a part of our Kids' Savings Club. As a Club member, they are eligible for our Quarterly Rewards Drawing** where they can win money or a cool prize, such as a tablet or a camera. Club members receive one Quarterly Rewards Drawing entry for every single deposit of $25 or more during the quarter, with one qualified entry permitted per week (see complete rules below).
Visit your nearest Burke & Herbert Bank branch or call us at 703-684-1655 to learn more.
*Minimum deposit to open is $10. Transaction limitations apply.
** Quarterly Rewards Drawing Rules
Quarterly Rewards Drawing is open to individuals 17 years old and younger. Rewards are presented to the winner's adult custodian. Each time a single deposit of $25 or more is made into a Burke & Herbert Bank Kids' Savings Account, one qualified entry is made into a quarterly drawing. One qualified entry permitted per week. In the month following the quarter, three winners are randomly selected. The first name selected receives a $25 Visa Gift Card. The second name selected receives a $50 Visa Gift Card. The third selected receives a reward valued at approximately $100. The entire submission pool is removed after that quarter's drawing is held. With the new quarter, a new submission pool is started.
Once a name is selected for a reward, that recipient is not eligible to win again for a two-year period. Need not be a customer to win. No purchase or transaction necessary to enter. A qualified entry may be obtained by sending your name, address, and phone number to Kids' Savings Club, PO Box 268, Alexandria, VA 22313. Only one mail-in entry allowed per person per quarter. Recipient need not be present to win. Names and images of the winners may be used for promotional purposes, including but not limited to internet and social media.
Consumer Disclosure: Prizes are one (1) $25 Visa® gift card; one (1) $50 Visa® gift card; and one (1) prize with an estimated retail value of $100. Odds of winning are determined by the number of qualified entries received.