Do you remember how old you were when you first opened an account with a credit union or bank? Perhaps you were 16 and had started your first job? Or maybe you were especially industrious and opened an account at 12 when you began your own lawn care business? Children pick up many lessons during their formative years and financial common sense should NOT wait until they are 18.
You can open a savings or checking account with them at RMLEFCU and make the best use of their allowance, birthday and holiday money or part-time salary money now.
Benefits of a Kid’s Savings Account:
Having a savings account makes kids more financially aware. After all, it’s a structure in place, with parents supporting it. Not only does having a bank account make it more likely kids can accrue savings but according to an Assistant Professor of Social Welfare at the University of Kansas, children will build positive relationships with financial institutions, diversify their portfolios, and accumulate more assets as they age.
Having a physical bank to go to takes financial lessons out of the abstract and puts them in real life. Or as the kids say, IRL.
Setting up a savings account is wise since they are long term investments and it is more difficult to take the money out. Kids don’t have monthly bills to pay yet so having liquidity is not a requirement. Also, savings accounts have few fees and will still accrue interest.
RMLEFCU has Kid’s Savings Accounts and an Opening Bonus
Open a savings account at RMLEFCU and we’ll boost it with a $25 1-year piggybank CD at 0.75% APY*! We’ll also give your young saver a free piggybank! Talk to an RMLEFCU representative today to learn more. To make sure they’re on track, refer to this article about the financial concepts children should understand depending on age.
In addition, our members’ children are learning interactively with Money Island. Here, they will travel (virtually) to exotic destinations, meet fascinating characters, and make smart financial decisions that earn real-life prizes.
Talk to a RMLEFCU representative today to open a savings account for your child.
* Offer applies to new accounts for young savers 18 years old and younger.
APY=Annual Percentage Yield. Offer valid through January 31, 2017.