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Why Start a Youth Savings Account at a Credit Union

Teaching children about financial responsibility is a gift that keeps on giving. One of the most effective ways to do this is by opening a youth savings account. While banks offer these accounts, choosing a credit union for your child’s first savings account can provide many benefits beyond basic banking.

What Makes Youth Savings Accounts Special?

A youth savings account isn’t just a scaled-down version of an adult account. These accounts are designed with young savers in mind, offering:

• Low or No Minimum Balances: Kids can start their savings journey with whatever amount they have, making saving accessible and encouraging.
• Educational Resources: Many credit unions provide fun and engaging tools, games, and even workshops to help kids learn about saving, budgeting, and making smart financial choices.
• Parental Controls: You oversee the account, setting limits or restrictions to guide your child and ensure responsible spending habits.

Why Choose a Credit Union Over a Traditional Bank?

Credit unions operate differently than traditional banks. As not-for-profit institutions owned by their members (account holders), credit unions reinvest profits into their services and community. Here’s how this benefits your young saver:

• Higher Interest Rates on Savings: Your child’s money will grow more quickly with credit unions’ more competitive interest rates on savings accounts. This instills in them a strong understanding of compound interest at a young age.
• Lower Fees: Credit unions typically have lower or fewer fees than banks. This means more of your child’s hard-earned money stays in their account, working towards their savings goals.

Benefits That Extend Beyond the Dollar Sign

Opening a youth savings account at a credit union does more than teach kids about money; it instills essential life skills that extend far beyond personal finance:

• Goal Setting: Saving for a specific goal – whether a new toy, a memorable trip, or even college – teaches children the value of setting objectives and working towards them. It provides a tangible sense of accomplishment.
• Delayed Gratification: Saving for something special teaches patience and the value of postponing wants to reach financial goals. This is an important life skill that applies to various fields outside of finance.

Financial Independence: Having an account gives children a sense of ownership and responsibility for their finances. It sets the stage for making sound financial decisions and achieving financial independence later in life.

A youth savings account at a credit union is a powerful tool for setting your child on the path to financial success. It’s an opportunity to teach valuable money management skills, instill responsible habits, and watch their savings flourish. Contact Energy One Federal Credit Union today to learn more about opening a youth savings account. We also offer checking accounts, loans and mortgages, and retirement planning to help secure your financial future.