Mobile Navigation

Close Mobile MenuOpen Site Search

Empowering Children Through Financial Education and Youth Accounts

Main Blog Article Content


As a parent your role is to prepare your children for their future. You can make a huge difference by giving them the financial education tools and knowledge they need to thrive as adults. One way to empower children is by focusing on their financial well-being while they are young. 

Learning about essential concepts like budgeting or saving will help them make sound financial decisions in adulthood and achieve economic well-being. Financial education can be fun, engaging, and impactful with the right tools.

Here, we'll illustrate how early financial education impacts children's spending habits and helps them understand the importance of saving. Then, we'll review the types of Power Financial Credit Union youth accounts available and how you can open one for your child.

The Power of Financial Education

While your child may not be managing a budget yet, they can start exploring concepts like saving, borrowing, or investing through games.

Building Financial Literacy from an Early Age

It's never too early to start working on money skills. A great way to foster interest is to use play money and a toy cash register. You can roleplay with your child and pretend to purchase items, pay for them, and count the change.

The next step is to get a piggy bank. Your child will have fun collecting change and counting their little nest egg with your help.

Cultivating Money Management Skills

Children can understand concepts like prices and value as early as six. It's the right time to introduce a small weekly allowance and gradually guide your child toward managing their budget.

Wants and Needs

U.S. children receive an allowance of around $19 a week, which means most purchases require careful saving and budgeting.

Rewarding your child for performing chores with a weekly allowance is a great way to get them to reflect on the value of things and learn to differentiate between wants and needs. It will also teach them about the importance of hard work.

Saving Goals

Has your child been eyeing a toy or asking for the latest video game? Encourage them to set aside some of their allowance by setting saving goals.

Spending Categories

Teaching your child about spending categories is an age-appropriate introduction to budgeting. For instance, A young child can create a fund to purchase gifts for family members' birthdays.

As your child grows, you can ask them to track their expenses and establish a budget for food, clothes, books, subscriptions, and more.

Make Financial Education Fun

Make learning fun and engaging with these tools:
  • Playing classic board games like Monopoly, Pay Day, or the Game of Life will teach your children vital financial concepts while connecting as a family.
  • The Greenlight money app and debit card is an excellent tool for tracking chores and weekly allowances. Your child can also learn about saving, investing and smart spending. 
  • Popular video games like Fortnite and Roblox offer in-game transactions. Setting a monthly in-game allowance can teach your child to manage their spending carefully.
  • Claim Your Future is an engaging browser-based game where children and teens must pick a career and manage a budget. It's an eye-opening introduction to concepts like saving or student debt.
The Significance of Savings Habits

Eighty-eight percent of parents consider raising financially independent children extremely important. Financial independence begins with saving, a concept you can discuss as your child matures and starts thinking about the future.

For many teens, getting their first job is a significant financial milestone. Once your teen starts working, you can give them responsibility by asking them to cover a few bills and introduce the idea of financial stability and emergency funds.

Investing is another critical concept to help your child build a sound financial future. You can explore investing together:
  • Open a savings account and show your teen how to compare interest rates.
  • Encourage your child to invest in supplies, tools, or advertisements for a side hustle like lawn care or pet walking.
  • Give your child some homework. Ask them to research different companies and pick a few stocks. Track how these stocks perform.
  • Let your teen practice investing in a risk-free environment with games like Build Your STAX or Wall Street Survivor.
Power Financial Credit Union Youth Accounts

Power Financial Credit Union offers youth accounts designed to empower children and teens. When combined with financial literacy, youth accounts are a valuable tool for raising financially responsible adults.

Rocky Raccoon Youth Savings Account

This free savings account is designed for children under 12. Its simplicity encourages your child to put money aside with Rocky Raccoon prizes and tokens.

Cha-Ching! Teen Checking Account

Foster a sense of responsibility and independence with our teen checking account. For ages 13 to 17, our Cha-Ching! Teen Checking Account has no monthly fees and includes a Visa card. You can set spending limits, and your child can learn how to budget and track their spending with online and mobile banking.

Open a Youth Account With Power Financial Credit Union

Introducing crucial financial literacy concepts through games and discussions is never too early. As your child ages and matures, you can gradually give them more freedom and responsibility by letting them manage their own money.

At Power Financial Credit Union, we aim to give you access to engaging youth accounts that will empower your child while making money management fun and accessible. Do you have questions about joining our credit union or opening a youth account? Contact us, and one of our representatives will get back to you!