
Children today have more access to financial products than ever before. With options ranging from debit cards to mobile apps, they have numerous choices for managing their finances. In celebration of Youth Month, let's explore why opening a savings account for your child can be beneficial.
Teach the basics of saving
Teaching your child the importance of saving money is one of the most crucial lessons you can impart. A savings account serves as an excellent tool to help your child grasp this idea. By regularly depositing funds into the account and observing its growth, your child will understand the significance of putting money aside for future needs.
Teach kids about money management
A primary benefit of opening a savings account for your child is that it helps them learn about money management in a truly hands-on way. When your child has their own account and they control their spending to a degree, they’ll learn the importance of tracking their spending and setting money goals. They’ll also learn how to manage an account at a financial institution. This includes depositing money, tracking balances and will later evolve into using a debit card when they get their first checking account and more.
Help kids save for a short-term financial goal
Transform the lesson of wise saving into a lifelong practice by encouraging your child to use their account to save for a short-term objective. Begin by discussing your child's financial aspirations and assist them in selecting a feasible goal. Then, guide them in developing a savings strategy using their account, which will aid them in achieving their goal. Your child can allocate money earned from an allowance, part-time job, or gifts received for birthdays or other events until they have saved enough in their account to make their purchase.
Build credit early
A child at any age can have a savings account. Telcoe Federal Credit Union youth members can open a student checking account at the age 13 with an adult co-signer, this is the next step in your child’s financial journey, where they can now get the hands-on experience of practicing their money management skills. Once they turn 18, Telcoe offers a Credit Builder Loan and Secured Credit Card to help teach making monthly payments and establishing a positive credit history.
Prepare for the future
Starting a savings account and learning experience from a young age can prepare your child for unexpected expenses in the future. As they age, their needs and expenses will increase, and the more you can help them prepare now, the better off they’ll be in the future. For example, your child may need extra cash to pay for a video game, or when they’re a bit older, for a senior trip. Having money set aside for emergencies will teach them to be prepared for any financial reality. In addition, Telcoe offers scholarships to high school seniors for trade schools and college.
Build responsibility and independence
Having a savings account can also help your child build a sense of responsibility and independence. By managing their own money and making decisions about how to save and spend it, they’ll learn valuable life skills that will serve them well in adulthood.
Credit Union Youth Month is aimed to promote financial literacy and education among young people, helping them to develop good money management habits and achieve financial security as they grow into adulthood.
In today’s world, where financial literacy is increasingly important, it’s crucial to start teaching children about money management from an early age. A good way to teach kids about money is by teaching them about the importance of saving money, not only you’re helping them develop a savings habit, but also financial skills will serve them well throughout their lives. In addition, Telcoe Federal Credit Union has different resources to set your children on the path of financial success! Please give us a call or email Marketing@telcoe.com with any questions.
Coloring Contest
Youth Savings Accounts
Youth Certificates of Deposit
Student Checking Accounts
Scholarships
And much more....
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