Getting The Most Out Of Youth Accounts
Managing money is a foundational life skill. That’s why it’s best to give your kids a head start on money management and saving. In honor of National Credit Union Youth Month, we are focusing on ways to help make this task as simple as possible for parents and guardians of our youth.
Dade County Federal Credit Union (DCFCU) is proud to offer specialized saving accounts for kids. Our Baby Steps Account is geared for children ages 0-2yr 11mo. Our Minor Account welcomes any youth aged 3-13 years old. Our Gen-You Youth Account is perfect for teens ages 14-17 and can open a primary Gen-You Savings and Checking account in their name, without a parent or legal guardian and can qualify for a debit card.
Ready to open an account for your child? Here are three ways to ensure that he or she gets the most out of their new or existing account:
1.) Set a goal
Let your child use this opportunity to save for something big. Together with your child, create a long-term goal, like saving up for a first car. Also create a short-term goal, like a new hoverboard. Set a date for when you hope to hit your goals.
Next, set up a savings calendar for illustrating how much money needs to be saved each month to reach the intended target on time. Discuss ways to add to the savings.
2.) Bank together
If this is your child’s first time owning an account, she’ll need you to show her the ropes. Take your child along when you stop by to deposit their savings and show them how it works. If your child asks you to withdraw money from their account, let them see how this translates into a dip for their savings.
When helping your teen child, you’ll need to walk him or her through that first deposit and withdrawal. After that, leave it to them. Make sure they understand that every swipe of their debit card means a dent in their account.
It’s also a good idea to warn kids of all ages about security. They should know to never share their account information with anyone and to keep their debit card in a safe place.
3.) Monitor your child’s activity
Always keep an eye on your child’s account. If your child is depositing less than planned, or your teen is maximizing his daily ATM allowance, speak to him about money management and impulse purchases.
Every financial lesson you teach your child today equips them with skills for a lifetime.