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.

UCCU is proud to offer specialized saving accounts for kids. Our Be Money Smart program is geared for children, youth, and teens aged 0-18.

Youth savings accounts offer no annual fees, competitive interest rates and quarterly dividends.

What better way to start saving for your future than with FREE money? Open a BeMoneySmart Savings Account before your child’s first birthday, and UCCU will make the first deposit of $10!

When your child opens a savings account, UCCU will give them a SmartSaver Rewards deposit card. Every time they make a deposit, we’ll punch the card and they’ll move closer to cash rewards. The more punches saved… the better the reward.  It’s the perfect way to help your kids learn saving habits and how to set and achieve saving goals.

Teenagers need a sense of independence. To help them gain that, teen account holders are eligible for a debit card with maximum daily limits that are set by parents/guardians.

Ready to open an account for your child(ren)? Does your child already have one? 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 UCCU to deposit her savings and show her how it works. If your child asks you to withdraw money from her account, let her 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.
Your Turn: How do you maximize the benefits of having a youth account for your child? Share your best tips with us in the comments!
SOURCES:
Share Button

Leave a Reply

Your email address will not be published.