Getting the most out of a youth account
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. So in honor of National Credit Union Youth Month, we’re focusing on ways to help make this process as smooth and as simple as possible.
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, they also have free access to our fun online games, educational articles, puzzles, contests, and more. And, 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 the holders in our iSave Teen Accounts are eligible for a checking account that includes a debit card with maximum daily limits that can be set by parents/guardians. Teens will also learn as they save, earn dividends, and start budgeting their 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 for ensuring your child gets the most out of a new or existing account:
Set a goal
Now that your child’s money will be sitting 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 then set up a savings calendar for illustrating 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
Whether your child is a first-grader or a teenager, they’ll need you to show them the ropes if this is their first time owning an account.
Always bring your children along with you when you stop by Elevate Credit Union to deposit their savings. Show them how it works and let them see the account balance growing. If your child asks you to withdraw money from their account, make sure they see how this translates into a dip into their savings.
For teens, you’ll need to walk them 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 also means a dent in 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 keep an eye on your child’s account. If he’s depositing a lot less than planned, ask him where his money is going, or if he could use some help managing 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 keep a careful watch on spending 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 how to make the most of those accounts. If you don’t have a youth account with Elevate, you can find out more at Elevate Youth Savings Accounts. and if you like this post, make sure you check out our other MoneySmart Tips.
