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Investing in Tomorrow: How Youth Savings Account Opens Doors to Future Opportunities

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It’s never too early to introduce your child to important life lessons like the value of money and the importance of saving. Parents who prioritize early financial education raise children who enter adulthood with the confidence and money-management skills they need for the future. When it comes time to start saving for a first car or putting a down payment on a house, they’ll be well-prepared.

These milestones might seem far off, but building a strong foundation can start right now with a youth savings account.

The ABCs of Saving

New generations are facing unique challenges. Brands are constantly encouraging spending, and many young adults end up juggling debt from student loans, credit cards, and other creditors.

Early financial education is more important than ever. Your child can start exploring basic financial concepts as young as age six through games and hands-on activities, and you can also teach them about the value of money with a weekly allowance.

Once your child is comfortable with counting money and understands the idea of putting money aside for later, you can look into opening a youth savings account.

Getting their own bank account is an exciting step for your child, and you’ll be surprised at how quickly they start playing an active role in managing their money.

Your Child’s First Youth Savings Account

It only takes $5 to get started with our Rocky Raccoon Youth Savings Account. With no monthly fees and a competitive interest rate, your child will see their little nest egg grow in no time.

Your child can earn tokens for each $10 deposit and redeem them to get prizes such as toys and gift cards. We also reward hard work with a $2 bonus for each A grade on their report card.

These accounts are a fun and educational introduction to saving for children under 12, and your child can continue managing their money as they grow with one of our teen savings accounts.

A Penny Saved

Does your child earn cash for doing chores? Do they look for other ways to earn pocket money, such as babysitting or dog walking?

Whether your child is a budding entrepreneur or enjoys helping out around the house, you can teach them the value of money with a youth savings account. In fact, 39 percent of children between the ages of 8 and 14 have a savings account, making these accounts the most popular banking products for children.

Once your child has an account, you can use it as a tool to set saving goals. Is your child talking about getting a new video game or a gift for a loved one? Take this opportunity to discuss budgeting and set a weekly or monthly saving goal toward this purchase.

Your child will feel a real sense of accomplishment once they reach their goal, and they will quickly learn to set increasingly ambitious financial goals as they gain confidence.

Goals and Decisions

Without proper guidance, children can struggle with valuing patience and hard work. With a youth savings account, your child can learn to be consistent and think about the bigger picture. This attitude will help them adopt good financial habits and make smarter decisions in other areas of their lives.

As a parent, you can guide your child by recommending saving goals that make sense for their level of maturity.

Learning Can Be Fun

Learning about finances should be fun and engaging. It’s why credit unions often offer educational resources and workshops designed to help children and teens learn about budgeting, investing, saving, managing debt, and other important financial concepts.

Introducing these concepts early will help your child make better decisions as they enter adulthood. Whether they need to balance a budget or build their credit score, your child will approach these new challenges with confidence.

If your child is too young for a savings account, we recommend playing the Savings Spree game to introduce the idea of saving and get your child excited about opening an account later on.

Once your child is comfortable with the concept of saving and earning interest, you can explore investing by playing the Stock Market game together.

Making the Transition to Adult Banking

As your child matures and becomes more independent, they’ll likely ask for more control over their finances. There will also be more opportunities to spend, from shopping with friends to going to the movies.

Thanks to our diverse family of products, we're able to offer additional options as your child's financial needs change.

Our Cha-Ching Savings and Checking accounts are a popular option among teens. Your child will continue earning some of the rewards they’re familiar with, like a $2 bonus for each A they get in school, but they’ll also get a debit card to take control of their spending.

Once your child turns 18, they'll qualify for a traditional savings account with competitive dividends and no fees as long as their minimum balance exceeds $5.

We find that introducing your child to banking products early helps us build a relationship based on trust. As your child transitions to adulthood, they'll feel more comfortable with exploring different banking products or getting help from one of our personalized financial advisors.

Set Your Child Up for Success With a Savings Account

Few things are more satisfying for a child than walking into a store and purchasing something they’ve been wanting with their own money. Imagine your child’s excitement once they have enough to buy that new tennis racket or a pair of designer jeans.

It’s never too early to teach the value of hard work and saving. A youth savings account is a fun and engaging introduction to these important lessons, and it’s also an opportunity to connect and share the values that matter to you.

Is your child ready for their first financial milestone? Set them on a path to a brighter future today by opening a youth savings account with Power Financial Credit Union.

Learn more about our youth savings accounts or contact us if you have any questions about opening an account for your child.