Managing money is a foundational life skill. 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 Education First FCU, we understand the enormity and difficulty of this task. We are proud to offer C.A.F.E. - a specialized savings account designed just for kids up to age 12. C.A.F.E stands for Center for Advanced Financial Education.
Our youth savings account offers 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 us, they also have free access to our fun online games, puzzles, contests, and D.I.P. - a Deposit Incentive Program that awards each member with a prize each month that they deposit $5.00 or more into their savings account.
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:
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 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, being sure to include money from birthday gifts, summer jobs, allowances and chores.
2.) Bank together
Whether your child is a young toddler or in middle school, if this is their first time owning an account, they’ll need you to show them the ropes.
Always bring your young child along with you when you stop by Education First to deposit his or her savings. Show him how it works and let him see the account 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.
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 they are depositing a lot less than planned, ask where their spending money is going. 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.
Remember: Every financial lesson you teach your child today equips them with money management skills for a lifetime.
How can Education First help?
What better way to celebrate National Youth Month than to open a savings account for your children? If you are interested in opening a C.A.F.E account for your child, click here or give us a call at 409-898-3770!