April is Youth Credit Union Month!
Every April, National Credit Union Youth Month serves to encourage kids to develop healthy saving habits by making savings fun and exciting.
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Getting a first savings account is a big step in a child’s (and parent’s) life. From the time they’re old enough to understand what money is and what it’s used for, they should be given some concept of keeping money in an account for later use. To help out parents with this task, we offer Divy’s Savings Account. This account is open to kids 13 years or younger and can be opened with just a $5 minimum deposit. Dividends are paid on balances of $100 or more!
*Please note, the Youth Credit Union Month Coloring contest is only open to kids 13 years of age or younger.
Getting the Most Out of Youth Accounts
Managing money is a foundational life skill. There are so many factors involved and so many open-ended questions at play. How much should you be saving when is it worth spending more? How do you keep spare change from burning a hole in your pocket? It takes years of discipline and training to perfect this skill, and ongoing self-control to maintain it.
That’s why it’s best to give your kids a head-start on money management and saving. As a parent or guardian, remember that the lessons you plant today will take root and blossom, enriching your child’s life for years to come.
Here at Diamond Valley, we understand the enormity and difficulty of this task. In honor of National Credit Union Youth Month, we’re focusing on ways to help make this process as smooth and as simple as possible.
Diamond Valley is proud to offer a specialized savings account that is designed just for kids.
That’s why we offer Divy’s Savings Account for kids aged 13 years or younger.
Our youth savings accounts offer no annual fees and quarterly dividends paid on balances $100 or more to help you teach your child that saving money always pays.
We’re more than just a place for your kid to keep their money, though. We also want to help your young ones learn all about money management. To do that, we go out of our way to make banking fun and kid-friendly.
Ready to open an account for your child? Does your child already have one? Read on for three steps to take for ensuring your child gets the most out of a new or existing account:
Set a goal
Now that your child’s money will be sitting in an account instead of a piggy bank, let her use this opportunity to save up for something big. Sit down with her and discuss what she’d like to save for. You can create a long-term goal, like saving up for college or for a first car. Also establish a short-term goal, like a new gaming console or a hoverboard.
Set a date for your goals, and then set up a savings calendar for illustrating how much money needs to be saved each month to reach the intended target by the designated date. Discuss ways to add to the savings, being sure to include money from birthday gifts, summer jobs, allowances and chores.
Whether your child is a first-grader or a teenager, if this is their first time owning an account, they’ll need you to show them the ropes.
Always bring your children along with you when you stop by Diamond Valley to deposit their savings. Show them how it works and let them see the account balance growing. If your child asks you to withdraw money from their account, make sure they see how this translates into a dip into their savings.
For teens, you’ll need to walk them through that first deposit and withdrawal. When they’ve probably got the hang of it, it’s time to take a step back and let them be on their own. They’ll feel like a million dollars managing their account independently.
However, share with your teen that every swipe of their debit card also means a dent in their account balance. Also be sure to warn kids of all ages about security. They should know to never share their account information with anyone, and to keep their debit card in a safe place.
Monitor your child’s activity
Don’t aim to be a helicopter parent, but do keep an eye on your child’s account. If he’s depositing a lot less than planned, ask him where his money is going. If your teen is maximizing his daily ATM allowance, speak to him about money management and impulse purchases.
Your teen’s daily withdrawal limit may need occasional adjustment, so keep a careful watch on spending to see if any modifications are needed.
Remember: Every financial lesson you teach your child today equips them with money management skills for a lifetime.