Managing money is a foundational life skill. And setting your kids up with youth accounts is a great first start to getting them on the right track. How much should they save? When is it worth spending more? How do you keep spare change from burning a hole in your pocket? How do you make the most of a youth account?
It takes years of discipline and training to perfect this skill and ongoing self-control to maintain it. That's why it's best to give your kids a head start on money management and saving. As a parent or guardian, remember that the lessons you plant today will take root and blossom, enriching your child's life for years to come.
Here at Elevate Credit Union, we understand the enormity and difficulty of this task.
Elevate is proud to offer specialized savings accounts designed just for kids.
We know that different ages and stages have different needs. That's why we offer Dollar Dog Club Accounts for children aged 0-12 and iSave Teen Club Accounts for teens aged 13-17.
Our youth savings accounts offer no annual fees, competitive interest rates, and dividends to help you teach your child that saving money always pays.
We're more than just a place for your kid to keep their money. We also want to help your young ones learn all about money management with Dollar Dog. To do that, we go out of our way to make banking fun and kid-friendly. When your child has a Dollar Dog account with Elevate Credit Union, each month, as they deposit at least $5.00 into their account, they will get an extra prize to take home.
When adolescence overtakes childhood, kids need a sense of independence and autonomy. We get this. That's why our iSave Teen Accounts holders are eligible for a checking account with a debit card with maximum daily limits that parents/guardians can set. Teens will also learn as they save, earn dividends, and start budgeting money. Learning responsible savings and spending habits early will prepare your kids for a sound financial future.
Ready to open an account for your child?
Does your child already have one? Read on for three steps to take to ensure your child gets the most out of a new or existing account:
Set a goal
Now that your child's money will sit in an account instead of a piggy bank, let her use this opportunity to save up for something big. Sit down with her and discuss what she'd like to save for. You can create a long-term goal, like saving up for college or a first car. Also, establish a short-term goal, like a new gaming console or a hoverboard.
Set a date for your goals and a savings calendar to illustrate how much money needs to be saved each month to reach the intended target by the designated date. Discuss ways to add to the savings, including money from birthday gifts, summer jobs, allowances, and chores.
Bank together
If your child is a first-grader or a teenager, if this is their first time owning an account, they'll need you to show them the ropes.
Always bring your children when you deposit their savings by Elevate Credit Union. Show them how it works and let them see the account balance growing. If your child asks you to withdraw money from their account, ensure they see how this translates into a dip into their savings.
You'll need to walk teens through that first deposit and withdrawal. Then, when they've probably got the hang of it, it's time to take a step back and let them be on their own. They'll feel like a million dollars managing their account independently.
However, please share with your teen that every debit card swipe diminishes their account balance. Also, be sure to warn kids of all ages about security. They should know never to share their account information with anyone and to keep their debit card in a safe place.
Monitor your child's activity
Don't aim to be a helicopter parent, but watch your child's account. If he's depositing much less than planned, ask him where his money is going or if he could help manage it better. If your teen is maximizing his daily ATM allowance, speak to him about money management and impulse purchases.
Your teen's daily withdrawal limit may need occasional adjustment, so monitor spending carefully to see if any modifications are needed.
Every financial lesson you teach your child today equips them with money management skills for a lifetime. Setting up a youth account is a great first start, and now you have some tips on making the most of those accounts. If you don't have a youth account with Elevate, you can learn more about it at Elevate Youth Savings Accounts.
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