Most people usually have 2 accounts, a checking account, and a savings account. Here are some bank accounts every family should have for financial freedom. You should aim to have more than one bank account so as to make tracking your expenses easier. They will also help you organize your money and save your family money. If you’re worried about tracking them all you can open them in one bank then register for internet banking to have access to all of them on one dashboard.
Here are some bank accounts every family should have:
Family Checking Account
This is generally a transactional account where you deposit your money before bills. It could be where your paychecks are deposited. This is one of the transactional bank accounts every family should have. Use this account to pay all your bills: Rent/mortgage, Electricity, Water, car insurance, medical insurance, and other family expenses.
Set up standing orders from this account for your savings account based on your budget. If you have any money left over you can use it to pay your debt and if you’re debt-free you can transfer it to the investment or savings account.
Always make sure you have enough to cover your monthly expenses. Depending on your bank, it’s best to choose one without fees and a substantial minimum bank account balance.
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Family Savings Account
The family savings account is one of the bank accounts every family should have. Set up a standing order from your checking account for 10% of your income. This account is for short term emergencies. In this account, you should always make sure you have 3-6 months’ worth of cash to live off at all times in case of short term emergencies.
After you have the short-term emergency funds in place you can use this account to save for other expenses like new furniture, new car, family vacation, and any other expense you may have.
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Emergency Savings Account
An emergency savings account should be an account where you do not withdraw any funds from the account. This is another one of the bank accounts that every family should have. In this account, you should make sure you have at least 12 months worth of cash that you can live off of in case of an emergency. You should only access this account in cases of a dire emergency.
You should set up a standing order of around 15-20% of your paycheck to allow you to have a substantial amount. Once you have 12 months’ worth of cash in expenses you can decide to go all the way to 24 months or start investing. When opening an emergency saving account always make sure it’s in an interest-earning account. This will help ease the impact in the event bad comes to worse.
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Independent Husband & Wife Checking Account
This is the account where your salary is deposited. These are bank accounts every family should have. You can transfer a certain amount to the family checking account for family expenses and easier tracking. The remaining money should be used for groceries, hair expenses and any individual expenses there may be. Both the wife and husband should have personal expenses catered for using this checking account.
If money is left over in this account you can transfer it to the kids saving account or you can use it for fun activities like a small family vacation.This account should have enough to cover your monthly expenses and bills.
Investment Account
Once your emergency savings account is all set up and you have enough cash to cover expenses for 12-24 months you can set up a standing order for your investment account. You can set up the same 15-20% that you had for your emergency account. This is one of the bank accounts every family should have. You can use this money to buy stocks or bonds. Invest this money in something that will multiply your money.
Kids Savings Account
Once you’re done setting up all the above accounts, you should set up an account for your kids. You can send any spare money you have in this account. These funds can be used to pay for things like school fees or any kid related expenses you may have. It’s one of the necessary bank accounts that every family should have.
Once your kid grows up you can tell them to always save at least half of all the money they get from relatives or from other jobs. This will encourage them to save more and you will be raising financially responsible kids. You can encourage them further by doubling every single penny they save in their account every month.
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