White piggy bank saving beside of plant growth on coins stacking.

Money Smart From The Start

Help your kids learn how to save and spend wisely.

OPEN A YOUTH MEMBERSHIP

One of the most valuable lessons you can teach your kids is how to earn, save and spend money responsibly. Kids' habits are set by age 7 — so starting young is important. With help from your Credit Union, you can start teaching them how to be money smart — from the start.

BRIANNA G. AND FAMILY MEMBER SINCE 2012

Ages 0 and 1

Even though they're too young to understand the concept of money, you can help by kick-starting their savings. Make small, regular deposits into an account just for them. Even just $20 a month would add up to an impressive amount after their first two years.

You could also set aside money in a share certificate (the same as a bank CD) for the same period of time, but earning a much higher rate.

If you really want to supercharge your child's savings over the long term, open a College Saver Share Certificate. You can make unlimited deposits at any time, and renew every 12 months until they turn 18.

Ages 2 and 3

Children can begin to form lifelong money habits as early as preschool — so it's never too early to start. If you're wondering when the right time is, it's as soon as your child is willing to engage.

Young children can start to learn the concept of money through hands-on activities that demonstrate what money is and how it's earned. They may enjoy playing store, but a pretend shop teaches more than how to use their imagination — trading money for goods introduces the basics of commerce, too.

Have them play dress up, too, and pretend to go to work in a variety of settings, like an office, a restaurant or school. Pay them for the day's work so they start to understand how money is earned. Introduce the concept of saving by encouraging them to put their money in a piggy bank (making one can be a fun project, not just a place to keep what they earned).

When your child wants a new toy, set a maximum on how much they can spend. As you browse, point out what's in and out of their budget. Even if they don't seem to understand, just keep asking, "How much does that cost?" or "Let's see if we have enough." Having the conversation is what's most important.

Jesus U. and Family MEMBER SINCE 2015

Ages 4 and 5

When grocery shopping, ask your child to help you clip or download coupons and then find those items in the store. Not only will they feel like they're helping, it will introduce the concept of saving. You can also start to familiarize them with the ideas of needs (milk, eggs, and toilet paper) and wants (candy, snacks). When it comes time to check out, let them put your card in the machine or hand cash to the cashier, so they physically experience paying.

Now is also a good time to teach your child about delayed gratification. When they want something on an impulse, don't give in — instead, take a picture and look at it later. If they still want it, shop around for the best price, or wait for it to go on sale.

Young kids enjoy coin-sorting machines, if only to watch the money disappear down the hole and listen to the cling-clang as they move along. Encourage yours to collect all the coins they can, then bring them to the Credit Union to use our Coinstar machines (free for Members).¹ The more fun you can make money management, the more engaged they'll be.

Ages 6 through 8

Many kids in this age group grasp the concept of money and are willing to work for it. If you give your child an allowance, be fair and consistent. They may also start getting money as gifts for their birthday and holidays. Young entrepreneurs might even start their own business, like a lemonade stand. Let them decide how to use their money — with your oversight, of course — so they learn from their choices.

You can help by providing a safe and easily accessible place to keep their savings. If they don't already have a savings account, open one. Make a trip to the Credit Union a special occasion. Encourage your child to interact with representatives or tellers, handing them money to deposit and taking transaction receipts. If you think they're ready, get them an ATM card, and take them to the ATM and show them how to deposit and withdraw money.

Even at this young age, you can also teach them to set simple goals for small items. Use this as an opportunity to continue the conversation about needs vs. wants and the importance of saving.

Candice W. and Family MEMBER SINCE 2003

Ages 9 through 12

At this age, kids may be willing to take on more work around the house or in the yard. Consider increasing their allowance, but only if you increase what they're responsible for paying for. Continue to encourage them to deposit their earnings into their account and, as they watch their savings grow, explain the concept of dividends and how the Credit Union pays them for saving their money.

Help them establish and achieve short-term savings goals, like buying a special toy or game, as well as longer-term goals, such as a bike or a new phone. Show them how to open a dedicated savings account just for that goal to keep it separate from their spending money.

You can also introduce the concept of charitable donations. Together, research organizations that interest them and pick one to make a small donation to. Donating unused toys or clothes they've outgrown is another way to teach them about giving back.

Ages 13 through 15

By the time kids reach their teens, they should learn to budget — whether it's money for lunch or new clothes for a new school year. Let them participate in the family finances by including them in your budget process.

A debit card is a great way to get young teens comfortable paying with plastic. Not only is it safer than carrying cash, you can also watch over their spending.

At this age, kids should start planning for longer term goals, like buying a car or saving for college. Now is the time to have an open conversation about how much you plan to pay for.

Their early teen years are also a great time to learn about the stock market. Pretend to invest in companies they're familiar with, like Apple or Amazon. Pick the stocks, then watch how they perform over the next month or so. Discuss how the stocks' values changed over that period of time, and what the impact to your (pretend) investment was.

ARRONDA D. and Family MEMBER SINCE 2013

Ages 16 and Up

Older teens should be putting everything you've taught them about saving, spending and budgeting into practice.

If you plan on buying a car for your teen, think about creative ways to involve them in the financial obligation: they pay for their own gas or split the cost of repairs with you. Sharing in the responsibility is a greater long-term gift than simply handing them the keys.

Talking about credit cards is as important as teaching them to drive. Although they can't have their own credit card until they're 18, you may be able to add them as an authorized user on yours to start building their credit. If you're confident they've mastered the basics and they are over 18, getting a separate card with a low credit limit may be a good way to get them used to borrowing and repaying.

Money Smart from the Start

Kids' Memberships to help you get them started on the right foot:

Junior Varsity (Ages 0–12)

A dividend-earning savings account with a low minimum balance of $5.
ATM card (with parent's approval).²
Available College Saver Share Certificate with a low minimum opening deposit of $200 and the ability to make additional deposits at any time.³

Varsity (Ages 13–17)

Everything in Junior Varsity, plus:

ATM withdrawals with age-appropriate daily limits: $40 for ages 13–15 and $100 for ages 16–17.
Ability to open a Free Checking account at age 16.
Mobile Banking access.⁴
Available Youth Debit Mastercard^®.⁵
Point-of-sale purchases up to $100 a day (ages 16–17 with a Free Checking account).

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You’ll need their Social Security Number and a form of identification, such as birth certificate or student ID.

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Disclosures

Insured by NCUA. Junior Varsity Club Memberships (age 12 and under) require a parent/legal guardian joint owner on all shares; Varsity Club Memberships (age 13–17) require a parent/legal guardian joint owner on certain products and services.

Free for Credit Union Members. Non-Members are charged a 15% processing fee.
Only ATM deposits allowed for JV Club Memberships.
Limit one 12-Month College Saver Share Certificate per minor. Early withdrawal/account closure subject to penalty.
Data charges may apply. Check with your mobile provider.
Youth Debit Mastercard available to Members age 13–17 with a valid ID and email address. Youth Debit Share requires: 1) a parent/legal guardian to be a joint owner within all shares on the Membership; 2) a $25 minimum deposit to open the Youth Debit Share; and 3) Subject to ChexSystems review. Minors age 0–12 may establish a Junior Varsity Membership (with parent/legal guardian as joint owner on all shares within the Membership), but are not eligible for Youth Debit Share and Youth Debit Mastercard.