It’s Never Too Early to Introduce Children to Financial Planning and Education

It’s important to introduce children and young adults to financial planning and education so they can learn the basics of budgeting, saving, and investing, and become knowledgeable about their financial decisions. 

According to a recent Forbes article, 75% of teens in the US say they lack confidence in understanding their financial situation. Most say they rely on other people for advice and guidance such as parents, friends, or even social media. 

Providing young people with a solid financial education can help them avoid debt traps and money problems in their future. If you are ready to help your child or young adult begin their financial education, Interior Federal has you covered! Below is an overview of the products and resources we offer.

Savings accounts

Interior Federal offers three types of savings accounts for people under 26 years of age. A Little Buffalos accounts for children, Teen accounts for those between the ages of 13 and 17, and a Young Adult account for those 18-26.

Both the Little Buffalos and the Teen accounts provide an initial $25 deposit and a quarterly newsletter, as well as special offers for birthdays: if there is a $500 balance in the savings on their birthday, $5 will be deposited; for a $1,000 balance, $10 will be deposited. Additionally, both the Little Buffalos and Teen accounts offer secondary savings options to easily separate savings for specific goals like creating an emergency fund or saving for a big purchase.

The young adult account is equipped with the benefits of enhanced digital banking services. With the same features, benefits, and competitive rates as our regular savings account, the young adult account allows you to take advantage of digital banking services such as free text alerts, bill pay, mobile deposits, and more, all with a minimum balance of just $25. Plus, the young adult account establishes their membership so that they can access other products. And remember, all deposits are insured up to $250,000 by the National Credit Union Administration or NCUA.

Checking accounts

Our Teen and Young Adult checking accounts offer no monthly fees, unlimited free ATM transactions, digital banking services with free text alerts, bill pay, mobile deposits, and more. The Teen account also has a Visa® Debit Card with Rewards and the Young Adult account offers an Annual Percentage Yield (APY) of 3.01% on funds up to $500 and no overdraft fees. Both accounts also come with an Oops! Coupon to cover your first official “bounced check fee”.

Money Market accounts

A money market account is another great way for teens to save for their future. With our tiered dividends, teens can start earning higher interest rates on any funds deposited into the account, no matter how large or small the balance is. Plus, since our money market account has no minimum opening deposit and no monthly fees, it’s easy to start saving without having to worry about fees eating away at your balance.

We also offer convenient digital banking access, so teens have quick and easy access to their accounts from anywhere. Teens can easily check their balances, transfer funds, and manage their accounts with our user-friendly mobile app.

Certificates

Interior Federal offers certificates for both teens and young adults, with a minimum opening deposit of $500 for teens and $50 for young adults. 

The Accumulator certificate is offered to teens, little buffalos and young adults. It has a 24-month term and requires a minimum of $50 to open, with subsequent deposits of at least $25. Certificates offer guaranteed rates of return, but funds cannot be withdrawn during the term without incurring a penalty.

A Little Buffalo stuffed animal is given with the first Accumulator certificate opened.

Auto Loans

Interior Federal makes it easy to get an auto loan. We offer competitive rates, flexible terms, and fast approval, allowing you to shop with confidence. Plus, a $50 free gas card via email, and our online application is quick and secure.

At Interior Federal, we’re committed to helping you become a responsible borrower and building your credit rating. It’s important to remember that while an auto loan is a great way to get the car you want, it’s also a big financial commitment. Make sure you understand your budget and are comfortable with your monthly payments before signing any paperwork.

Visa® credit card

Interior Federal offers a Visa® credit card that’s perfect for young adults. With an introductory rate of 0% APR for the first 6 months, then a rate as low as 12.35% APR  for Visa Platinum and 14.35% APR for Vista Platinum Rewards. It has no annual fee, a low fixed interest rate, and rewards like cash back or discounts on purchases, it’s the perfect card for learning how to use credit responsibly.

Young adults must be at least 18 years old. Plus, with our secure online application process, it’s easy to get started, and you can use your rewards points for cash back or discounts on future purchases. At Interior Federal, our goal is to help young adults learn how to build their credit history and use credit wisely. It’s also important to remember that credit cards should always be used responsibly, so it’s important to understand your finances and budget before agreeing to any new credit line.

Youth-Focused Financial Resources

At Interior Federal, we believe that learning about money and finance should be fun and entertaining! Below is a look at four, fun, interactive games that can be used to learn the basics of budgeting, investing, and saving while also developing financial skills in decision-making, goal-setting, and more. Plus, they’re completely free!

Cash Puzzler 

Visa’s Cash Puzzler game is an interactive financial education game for children that combines memory puzzles with money-related topics. Players must put together the pieces of a scrambled image of a dollar bill, with choices ranging from 1 to 100 dollar bills. As they play, they are also presented with fun facts about famous financiers, such as Benjamin Franklin and Ulysses S. Grant. It is a great way to introduce children to the basics of money management while also honing their memory skills.

Money Counter

Money Counter is an interactive game geared toward children which teaches them about money management. Players practice counting, identifying, and saving money while learning about U.S. currency, with the aim of earning rewards to dress up as a virtual character called Peter Pig in fun scenes. This game provides an entertaining way for kids to learn about financial literacy and planning.

The Payoff

The Payoff is a financial education game developed by Visa® that puts players in the shoes of Alex or Jess, two young video bloggers competing in a life-changing video competition. Players must help the two make smart financial decisions within a tight three-day deadline, manage their finances, and deal with unexpected events. Ultimately, the goal is for players to complete their video and win the competition.

Financial Football

Financial Football, developed by Visa and the NFL, is a free interactive game that educates children and young adults on personal finance. Available on iOS and Android devices as well as online, this fast-paced experience helps users become financially savvy through enjoyable gameplay. In addition to the game itself, Financial Football also offers free resources such as budgeting advice and strategies.

Financial Education

Financial education is a crucial part of developing financial independence and security. Teaching children, adolescents and young adults about the importance of planning for their financial future can help them make smart decisions when it comes to managing money and credit.

There are many benefits to introducing these age groups to basic financial concepts like budgeting, saving, spending wisely, understanding debt, and investing. Learning how to make smart money decisions can help young people establish a financial foundation that will last well into adulthood.

At the same time, understanding the basics of personal finance can help reduce anxiety associated with managing finances, increase confidence when it comes to making important financial decisions, and provide individuals with an overall better understanding of their financial situation.

Educating young people on financial planning and education can help them make more informed decisions when it comes to how they save money, along with how they spend and invest their money. It can also help reduce the amount of debt they take on in adulthood, as well as encourage them to start saving early for retirement. With a better understanding of the world of personal finance, young people can make more informed decisions that will ultimately help them become financially independent and secure.

Finally, they need to be taught how to access the right financial resources that can help them make informed decisions and build a strong financial future. With the right information, support, and guidance, children and young adults can make sure they have a secure future.

Need help deciding what product or resource is best for your child? Contact an Interior Federal financial specialist today!