Savings accounts are like retirement accounts: The earlier you start one, the better off you’ll be later. That’s why starting savings accounts for children is extremely beneficial. To give a simple illustration: Imagine you put $10/month in your savings account every month starting now. In one year, you’ll have $120 in your savings account. Now imagine you started doing that ten years ago. You’d have $1,200 in your savings account right now! And that’s not even including all the interest you would have accrued during that time.
The benefits of starting savings accounts for children is simple: It gives them a head start. If they deposit as little as $10/month, they could have more than $1,200 by the time they graduate high school. And that could really help out when it comes time for them to be financially independent. Birthday money, holiday money, and money earned from summer jobs can add up. Just think about what could be possible for your child if they start saving now.
The Benefits of Savings Accounts for Children
How many people do you know who had their personal finances all figured out when they were a teenager? Probably not many. In fact, I bet there’s not a single person among us who doesn’t wish they knew more about managing their money from a young age. Just think about how much better off we’d be today! But our children absolutely have that chance. They can learn the value of money and how to manage it effectively throughout their lifetimes. It’s not too late!
They Become Educated in Personal Finances
That starts this month. April is National Credit Union Youth Month, and our goal is to educate children and teenagers nationwide in financial literacy. We’ve even launched an online financial literacy program to help with the education part. With three programs available to children, teenagers, and adults, Banzai aims to teach your children everything they need to know about budgeting, managing expenses, achieving financial independence, and applying for loans.
They Start Saving for Their Future
Education, however, is only one part of the equation. The other part is action. That means starting a savings account that will help your child save for their future. Whether that means saving for college, saving to buy a car, or saving to be able to live on their own, starting a savings account now—instead of later—will give your child a head start on success. DEXSTA Federal Credit Union even offers several perks to help with that.
Children as young as six-years old can open a savings account at DEXSTA. They’ll even receive a prize from our treasure chest every time they make a deposit. And for every seven deposits they make, they’ll even receive a free trip to the movies! Similarly, teenagers between the ages of 13-17 are eligible to receive $20 for every eight deposits they make. No matter how much they want to save, getting started now will help set them up for success later.
Stop by one of our branches to open up a youth savings account today. In honor of National Credit Union Youth Month, we’re even giving a free gift, as well as a prize from our treasure chest to every child who makes a deposit or opens an account throughout the month of April. Hope to see you soon!