How to prepare your kids for financial success.
Here are 6 steps to prepare your kids for financial success:
1. Talk to your children about money.
Have a conversation with your children about finances. It’s an important milestone that will create excitement about gaining “big kid” responsibilities. After your discussion, schedule a time when you and your child can visit a bank or credit union.
2. Open a savings account.
There are specific savings programs available geared towards kids. For example, Everwise Credit Union offers a Kids Club¹ that’s designed for children up to age 12. Parents or guardians can open a membership with the child as the primary owner. Kids get a piggy bank upon opening an account and can learn and grow with free online financial education tools, designed especially for parents and kids to use together.
Teens can open a Student Rewards Checking² account to manage their money and earn cash rewards.³ The account features cutting-edge technology for 24/7 banking, everyday buying power with a cash-back debit card, and cash rewards for teens who learn more about money management and then take a few simple steps.
Get entered for a chance to win $500 with Student Rewards.
Open a new Student Rewards Checking account for your teen by August 31, and get instantly entered for a chance to win $500.
3. Visit frequently.
It's recommended to visit a branch often to foster good habits for kids who want to learn about saving money. A perfect time to deposit funds into a saving account would be when they receive money for chores or reaching milestones like birthdays and graduations.
4. Agree on a savings and spending amount.
Kids should learn about the value of saving for the future while also spending responsibly. Make agreements with your kids when depositing money. If they don’t want to deposit all of it, go half and half. Let them spend some and save some. Emphasize the receipts when they make a deposit to help illustrate that their balance is growing. In addition, help them set realistic and achievable savings goals.
5. Learn about banking language.
Savings accounts can help teach important life lessons, like the difference between a “want” and a “need.” They can also help educate children about how to save for a “later” reward. Plus, opening an account for your child can also teach them about necessary banking language, such as savings, deposit, balance, withdrawal, and interest.
6. Monitor the account together until your child is 18 or older.
For kids under 18, a parent is required to help open the account for them, so usually they choose the login information and password together so they can both monitor the account. When the child turns 18, the parents can choose to remove themselves from the account.
Use this guide to prepare your kids for financial success and continue to learn more strategies and best practices through our online learning module, Family Conversations about Money.
With 21 years of banking experience, she is currently co-chair of the credit union’s Diversity, Equity, Inclusion, and Belonging Advisory Council and is active in the Indianapolis community.
¹ Subject to membership eligibility. All credit union programs, rates, terms and conditions are subject to change without notice. A $5 initial Primary Savings account deposit and $7 membership fee is required at account opening.
² Primary member must be 14 to 23 years of age to qualify for the Student Rewards Checking Account and receive rewards. If the primary member is under the age of 18, a parent or guardian must be on the membership and account. Only one Student Rewards Checking account per membership. All rewards will be deposited into the Student Rewards Checking account.
³ Earn $10 your first year if you use the Everwise Mobile App, enroll in online banking, and register for eStatements and Round-Up Savings. Earn $25 Everwise Financial Empowerment Program Reward — Complete at least 6 modules of the program through a participating school or the self-guided programs (Parents & Kids or Solo). Receive a passing score (at least 70%) on each module. Present your Certificate of Completion/Transcript at any Everwise branch (printed or via your mobile device) to receive the one-time reward. Plus, get $10 for each year that you don't overdraw your account.