August 16, 2018
Getting The Most Out of Kids Accounts
Managing money is a foundational life skill for both kids and teens. There are so many factors involved and so many open-ended questions at play. How much should you be saving? When is it worth spending more? How do you keep spare change from burning a hole in your pocket? 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 Interior Federal Credit Union, we understand the enormity and difficulty of this task and are proud to offer specialized savings accounts that are designed just for kids. Our kids accounts, also known as Little Buffalos Savings accounts, were designed to get even the youngest children interested and learning about financial education. We know that different ages and stages have different needs. That’s why we offer kids accounts for children aged 0-12, as well as teen accounts for children aged 13-17. Both savings accounts offer [no annual fees, competitive interest rates and quarterly 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, though. We also want to help your young ones learn all about money management. To do that, we go out of our way to make banking fun and kid-friendly. When your child has an open youth account with Interior Federal Credit Union they also have access to our fun online games, educational articles, puzzles, and more.
When adolescence overtakes childhood, kids need a sense of independence and autonomy. We get this. That’s why the holders in our Teen Accounts are eligible for a debit card. Our teens can also enjoy intriguing online articles, videos and fun financial games on our website. Learning responsible saving habits at an early age will prepare your kids for a sound financial future.
Ready to open an account for your child? Read on for three steps to take for ensuring your child gets the most out of his or her account.
1.) 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 for a first car. Also establish a short-term goal, like a new gaming console or a hover board.
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, being sure to include money from birthday gifts, summer jobs, allowances and chores.
2.) Bank together
Whether 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.
Show him how the account works and let him see the balance growing. If your child asks you to withdraw money from his account, make sure he sees how this translates into a dip for his savings.
For teens, you’ll need to walk them through that first deposit and withdrawal. 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, share with your teen that every swipe of their debit card also means a dent in their account balance. Also be sure 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
Don’t aim to be a helicopter parent, but do keep an eye on your child’s account. If he’s depositing a lot less than planned, ask him where his money is going. If your teen is maximizing his daily ATM allowance, speak to him about money management and impulse purchases. It may also be useful to monitor the account in online and mobile banking.
Remember: Every financial lesson you teach your child today equips them with money management skills for a lifetime.
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