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 AgFed ,we understand the enormity and difficulty of this task. In honor of National Credit Union Youth Month, we’re focusing on ways to help make this process as smooth and as simple as possible.
AgFed is proud to offer specialized savings accounts that are designed just for kids.
We know that different ages and stages have different needs. That’s why we offer All-Stars accounts for children aged 0-12, as well as Young Millionaires accounts for teens aged 13-17.
Our youth savings accounts help you teach your child that saving money always pays. Learning responsible saving habits at an early age will prepare your kids for a sound financial future.
To celebrate Credit Union Youth Month, for everyone new All-Stars or Young Millionaires account opened during the month of April, AgFed will contribute $45 to the 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:
Set a goal
Now that your child’s money will be sitting in an account instead of a piggy bank, let them use this opportunity to save up for something big. Sit down with them and discuss what they would 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.
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. Let them see their account balance growing. If your child asks you to withdraw money from their account, make sure they see how this translates into a dip into their 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.
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’re depositing a lot less than planned, ask them where their money is going. If your teen is maximizing their allowance, speak to them 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.
Your Turn: How do you maximize the benefits of having a youth account for your child? Share your best tips and techniques with us in the comments!
*Promotion valid from April 1, 2023 - April 30, 2023. To qualify for the $45 incentive, the All-Stars or Young Millionaires account must be established between April 1 and April 30 and funded with a minimum share of $5 no more than 14 days after account establishment. Limited to one incentive per child. Existing All-Stars/Young Millionaires account holders are not eligible. Upon verification, the incentive will be paid within 30 calendar days after the new youth savings account is established. The bonus incentive is considered interest and will be reported on IRS 1099-INT. This is a limited time offer. Certain conditions or restrictions may apply. AgFed reserves the right to withdraw this offer at any time without notice.