Youth Accounts and Teachable Moments
Posted by GO Federal Credit Union on July 25th, 2018
Let’s face it, money is what makes the world turn. As parents, we have to teach our children the fundamentals of money management. Successful money management leads to independent and successful lives for our children.
Youth accounts at your local credit union are a great way to begin the process of teaching children to manage money properly. Visiting your credit union and opening their first savings account can be an experience your child will forever thank you for.
Age is not a Requirement
Children can learn at a young age about the process of banking. When they have a youth account, they can set goals about how much they want to save or what they want to purchase. This teachable moment involves guiding your child in the right direction. Not only do they learn about saving money, they learn how to make knowledgeable decisions about using and saving their money.
Lessons to be Learned
Making the decision to open a youth account is invaluable to your children. You are taking an important first step toward teaching them lessons that will serve them well into adulthood. These lessons include:
• Setting goals
• Interest rates (what they are and how they affect totals)
• Use of debit/ATM cards
• How to read a statement
• How to use online banking
Don’t Miss the Teachable Moments
All the lessons you can teach your children will be lost if you don’t play an active role. You can be involved by sitting with your child when they get their bank statements. Help them learn to read and understand this important document. Explain to them about what annual fees are, as well as interest rates and dividends. Teach them what a debit card is and how it works by accompanying them to make purchases. Help them choose obtainable goals and how to make good use of the money they have and receive.
Based in Dallas TX, GO Federal Credit Union has committed itself to empowering its members through meeting their various financial needs. Like any other credit union, GOFCU is also a not-for-profit financial institution.
Federally insured by NCUA and Equal Housing Lender