What Are Youth Accounts and Why Are They Important?
It’s important to teach kids the importance of financial responsibility while they are young, as they will quickly recognize the relationship between money and getting the things they want. Unfortunately, kids are highly unlikely to learn this anywhere outside of the home, so it’s really up to you, the parent, to help them develop a healthy relationship with money.
What Are Youth Accounts?
Youth accounts are savings accounts and checking accounts designed for children. They often require a much lower deposit to open than an adult’s account, they have great interest rates, and also fewer fees.
What Are the Benefits of Youth Accounts?
There are so many great benefits of youth accounts that will help your child learn how to responsibly save and spend money before they leave home. Here are some of the top perks of starting off young.
- Youth accounts teach financial responsibility. Youth savings accounts teach children how to responsibly keep track of their money and save to meet their goals.
- Youth accounts teach children how to set and achieve goals. Depositing money into a savings account to buy that new toy is a great way to develop the skills of setting and achieving goals. It also serves as an incentive to keep saving.
- Youth accounts help children recognize the difference between wanting something and needing something. Learning how to budget for a new toy helps children understand that items have different values, that there is a difference between wanting something and needing it, and the importance of saving money to purchase something later.
- Youth accounts help children learn about investing. Using your money to make more money is a fascinating learning experience for a child! As children set aside money and learn to invest smartly, they can watch their money grow and develop a sense of pride and accomplishment.
Open a Youth Savings Account Today
As you can see, youth accounts provide many learning opportunities and help children develop essential skills they will need to use for the rest of their lives. At Volt Credit Union, we can help you open savings accounts for your children so they can start learning these lessons early and develop a healthy relationship with money. If you’re ready to get started, call us today or stop by one of our two locations in Springfield or one of our shared branches.