Teach Your Child to Handle Money Responsibly with Youth Savings Accounts
Getting your children started on the right foot is what parenthood is all about. From giving a good education to getting them into healthy habits, you want to give your children every opportunity to prepare for adulthood. This reason is why we offer many youth savings account options that can provide your kids and teens with financial support and tools—all under your guidance.
Kids savings accounts play a important role in your child’s development, serving as a foundation for financial literacy and providing peace of mind about their future. By learning about money, budgeting, and saving early on, your child can be better prepared to manage their own finances as they grow.
What Is a Youth Savings Account?
A youth savings account is a type of banking account that is specifically structured for parents and their children. Two benefits of these accounts are to build financial literacy and provide children with the ability to transition their savings into a standard savings account easily. Here at Lanco Federal Credit Union, you can help your child open a savings account for kids as long as your child lives in Lancaster County or has immediate family members who already enjoy our membership. This person could include a parent or sibling, or even a step-parent, step-sibling, or grandparent.
As your child grows and starts seeking more independence, it’s natural for them to want to participate in activities that often come with costs. Perhaps your child likes going to the movies, picking up new games, or trying out a new hobby. Since many of these experiences may require some spending, they are great opportunities to teach your child about saving, budgeting, and responsible spending from their child or teen savings account.
How Can You Use a Youth Savings Account?
Kids savings accounts are designed with many different features that you can leverage as you set your children up for success. Here at Lancaster Federal Credit Union, we have six major tools for you to take advantage of when you open a savings account for kids:
Share Savings Accounts
A share savings account is the foundation of your child’s savings and spending through Lanco FCU. With a simple $5.00 deposit, a child share savings account can be opened, and accounts with balances of $25.00 or more earn dividends. These accounts for kids provide simple ways for your children to save and earn money.
Hang Ten Savings
Hang Ten is our long-term savings program that provides regular rewards for smart saving. Each month that your child deposits $10.00 into their Hang Ten account, we will add $1.00 as an extra reward dividend. This incentive provides quick dividends and allows them to save up for their own big purchases.
Youth Certificates
Certificates are different from regular savings accounts. They are a fixed-term account designed to earn higher dividends. So, while additional deposits cannot be made and early withdrawal penalties may apply, youth certificates are an excellent way for kids to earn more while building long-term savings habits.
Report Card Rewards
Much like how you might give a bonus to your child’s allowance if they do well in school, your child can earn extra savings in their youth savings account for every “A” (or equivalent) grade they earn per marking period (up to $5.00). This program for youth savings accounts provides that little extra incentive for healthy financial and educational habits!
Teen Checking
At Lanco FCU, teens can enjoy the benefits of a free Kasasa® checking account, with no minimum balance requirements and no monthly fees. Plus, they can earn rewards like cash back on debit card purchases and refunds on ATM fees!* It’s the perfect way to help your teen learn money management while enjoying great perks.
Visa Debit Card
Debit cards provide a secure, convenient way to manage money without carrying cash. They help track spending, teach budgeting skills, and make payments easy for both in-store and online purchases. Plus, they promote financial responsibility while offering a safe and controlled way to access funds.
With these options at hand, you have many ways to help your kids balance their priorities and channel their energies into financial success! From incentivized savings programs for minors to convenient teen checking accounts, you can provide your young loved ones with the best options and opportunities to learn about money and grow their savings!
*Account approval, qualifications, limits, and other requirements apply. Kasasa is a registered trademark of Kasasa, Ltd., registered in the U.S.A.
Benefits of an In-Person and Online Bank Account for Minors
When you have a young child, teaching them life lessons is something that you want to do but might struggle with – all parents do at some time or another. With a youth savings account, you can provide your child with plenty of opportunities to practice their financial literacy skills, such as:
- Budgeting to meet their goals
- Balancing their needs and wants
- Practicing smart spending skills
- Saving wisely and building emergency savings
- Maximizing potential dividends
The world of finances can be very confusing, even for adults. This fact is why it’s so important to help your kids by laying down a solid foundation for them to practice their financial skills. Preparing this foundation of financial literacy can also open up conversations about your own experiences – successes and mistakes alike. Help your child today by opening an account specifically designed for savings for kids.
Give Your Children Money Management Skills for Life with Lanco FCU!
Your child’s future success can be heavily influenced by the tools and life skills that you impart to them today. Giving them every opportunity to learn good financial skills and tools should include giving them the same kinds of banking and money-management tools that they will use as adults – but with safety measures and rewards to keep them invested mentally, not just financially.
If you’re interested in helping your child be set up for long-term success, then call Lanco FCU today! We are a federal credit union that is invested in the Lancaster County, PA community. We know that the best way to give back to the community is to invest in the future – so let’s get started with your child’s youth savings account today!