Police Federal Credit Union is deeply committed to fostering financial well-being, and we know imparting strong money management skills to the younger generation is of paramount importance. Without a doubt, equipping children and teens with financial literacy is a cornerstone for their future success. See how we can empower the next generation to navigate their financial journey with confidence.
Why Financial Literacy Matters
Financial literacy is not just about understanding numbers; it’s about instilling money skills that will serve our children throughout their lives. From budgeting and saving to understanding credit and investments, these competencies lay the groundwork for responsible financial decision-making.
A strong and comprehensive financial education enables children and teens to take control of their financial futures and gives them a solid footing to make independent, informed decisions.
By learning the value of budgeting and prudent spending habits early on, kids and teens are better equipped to avoid falling into debt traps, thereby reducing the potential for unpleasant financial stress.
4 Key Money Skills to Teach Our Youth
The real world is expensive and complicated, and if young adults lack financial aptitude, they will struggle not only fiscally, but emotionally as well. Here are the most important money management skills that children need to learn to build financial literacy:
1. Budgeting Basics
Teaching kids how to budget—allocating money for monthly expenses, savings, and understanding the difference between needs and wants—is crucial.
2. Savings and Goal Setting
Encouraging the habit and imparting the wisdom of saving while setting achievable financial goals fosters a more disciplined mindset that plans for the future.
3. Understanding Credit and Debt
Educating teens about credit cards, loans, and the impact of debt on their lives is critical for their financial health and well-being.
4. Introduction to Investments
Introducing the concept of investments, compound interest, and long-term financial planning can nurture future wealth creation.
Know that cultivating financial literacy in kids and teens today creates ripple effects, impacting not only the current generation but future generations’ financial success as well.
Opening a Credit Union Account for Your Kids or Grandkids Can Propel Them Toward Financial Security in Adulthood
An easy way to help kids and teens acquire money skills as they grow up is by opening a credit union account for them. This way they can build financial relationships and aptitude while you’re still there to guide them.
Police FCU offers the following accounts for minors:
- Savings Accounts
- Money Market Savings Account options
- Checking Accounts (ages 16 and up)
- Share Certificates of Deposit
- Coverdell Educational Savings Account:
To help save for college expenses, this option includes our 12-month Add-On Coverdell ESA Share Certificate, which can be opened with as little as $100.
Addons are allowed throughout the term up to the maximum allowed annual contribution. The special Coverdell ESA Add On Share Certificate also pays 2.00% Annual Percentage Yield (APY*)!
Adults can monitor (and conduct transfers to) minor accounts by establishing a Trusted Relationship, which can be accessed via Digital Banking and your Police FCU Mobile App. All you have to do is complete and return the Trusted Relationship Access Form.
Checking Accounts For Teens
Opening a Police FCU checking account for your teen provides a hands-on experience that will help your child prepare for the financial responsibility that they will need in adulthood.
With a checking account, your teen can learn the following money management skills:
- Receiving monthly statements
- The importance of keeping accurate financial records
- How to pay bills with their account
- Monthly budgeting skills
- And more!
Parents can set up Trusted Relationship Access, which allows them to monitor their child’s accounts and also conduct funds transfers using Digital Banking or the Police FCU Mobile App.
Checking Account Benefits For Your Teen
- Responsibility:
Learning responsibility with a checking account and debit card can help your teen develop healthy money habits and set them on an early path to financial freedom.
- Financial Freedom:
Financial freedom as an adult allows them to pursue their desires without money being the biggest factor in their decision-making.
- Good Spending Habits:
If teens learn to never spend more than they have saved, they will be prepared to better manage expenses and follow smart budgeting and spending habits.
- A Sense of Pride and Independence:
When they conduct their own “business,” they will feel a sense of independence and financial confidence as they take over their spending habits as an adult.
- Convenience:
Free Digital Banking access for your teen to:
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- Monitor their Police FCU accounts
- Pay bills
- Set account balance and transaction alerts
- Transfer funds
- Reorder checks
- Locate local branches and ATMs
- Securely deposit checks from their smartphone or tablet with mobile check deposit or receive funds via direct deposit
- Free access to over 5,000 Share Branches and over 30,000 surcharge-free ATMs nationwide.
Wherever they live, work, or go to school – establish an account that can move with them.
In addition, our teen checking accounts require no minimum opening deposit, no monthly maintenance fee, and deliver no-fee e-statements. (The paper statement fee is $1 per month. The fee is waived if you enroll in Digital Banking and choose to receive e-statements.)
Open a Teen Checking Account Today!Gift the Power of Financial Literacy With Police Federal Credit Union
Remember, the journey toward financial literacy starts today, and every step taken today shapes a more secure and empowered future.
By providing kids and teens with the necessary tools and knowledge to make informed decisions, we pave the way for years of financial well-being. Together, let’s invest in the financial education of our youth and equip them to enjoy a brighter, more prosperous tomorrow.
Not a member yet? See how you can join Police FCU today!