Don’t Let Your Savings Go Extinct!

April is an important month in the credit union industry because it is National Credit Union Youth Month. While we celebrate all of our members each and every day, our youngest members earn the spotlight this month.

You already know all of the advantages of banking with a credit union over a big bank. Credit unions are not-for-profit, member-owned cooperatives that have one mission – to help their members make or save money. This “People Helping People” philosophy is why credit unions offer lower interest rates on their loan products, higher interest on checking and savings products, and top-notch service. Not to mention that credit unions typically eschew (avoid charging) the high fees that banks love to assess their customers.

Now, I know what you’re thinking. Since a child cannot apply for a loan, they don’t care about low rates on loans. Young children often have accounts for their savings, but many are unable to start a checking account. So why would a credit union membership at such a young age matter?

It matters A LOT! Your financial literacy, including valuable savings habits, starts when you develop a partnership with your financial institution. You want to make sure that you are learning healthy habits from the onset rather than having to correct them later when it’s so much harder to do. There is no better place to learn the crucial facts about financial wellness than at a credit union.

Think back to your very first account. How was it opened? Most likely, your parents or guardian probably had an account there, and they decided to open one for you.  If you were like my brother at that age, you gave exactly zero thought to that account until you were old enough to start working. On the other hand, I deposited every birthday and Christmas check that I received. The thing is, by the time you start working, you have had an established account for longer than you can remember, and it’s just easier to keep it. That is how people develop their relationships with their financial institutions. Now, this is WONDERFUL if you have an institution that treats you right…not so good if you’re stuck with a big bank.

The good news is, you aren’t stuck with that bank.  Even if you’ve had your bank account for decades, you can still make the switch to a credit union. We offer products for members of all ages, including ones specifically developed for the needs of members aged 0-18.

Youth Savings

An InFirst Youth Savings account is your child’s pathway to credit union membership. This is the very first product that they will ever have with us. It signifies their membership with the credit union and it is theirs for life. That means as they grow, their account grows with them. When we say that we provide a lifetime of financial solutions to our family of members, we really do mean a lifetime.

Teen Checking

To learn about budgeting, needs versus wants, spending vs. saving, and so much more, we encourage our young adults to learn fiscal responsibility with a Teen Checking account. This product is available for children starting at age 13. Your child can receive real-world practice in making purchases, depositing money, and reconciling their account. We even have a built-in safety net in the form of daily debit card transaction limits, so parents have plenty of peace of mind.

Youth Share Certificate

This is an especially attractive product for those of us interested in long-term savings. With just $100, you can open a Youth Share Certificate for the child(ren) in your life. Start with a shorter-term certificate, as low as six months, or go all-in with a 60-month certificate to maximize the return – the choice is yours. One unique feature of a Youth Share Certificate is that you can add to it. This means that allowance money or birthday and holiday checks or cash can go straight into the certificate. This is an excellent tool to get younger savers excited about saving. As the interest compounds, they will be delighted to see the balance increase right before their eyes.

If you are interested in helping your children learn lifelong financial skills, open a Youth Savings Account for them today. Even better, if it is opened during April, we will match the initial deposit, up to $50.

I want to hear from you! Leave a comment below, or email me.

Krista Kyte is a personal finance blogger and personal banker with over 18 years of experience in the financial industry. Krista is passionate about helping our members understand their financial situations. She writes tips that will help consumers reach and maintain financial security, and start living the life they’ve always wanted.