3 Reasons to Choose a Credit Union for a Child’s First Account

Teaching children to appreciate the value of a dollar is one of the most important life lessons parents can pass along. Many families find that one of the best ways to achieve the goal involves opening a savings account in a child’s name. Doing so helps children develop an early habit of saving for rainy days, which can serve them well down the road.

If it’s time to open a starter savings account, a local credit union can be the best place to go. Unlike traditional banks that are for-profit institutions, credit unions are member-owned cooperatives. They exist solely to serve their members, no matter how young or old. For first-time accounts, credit unions may prove to be a brilliant choice for these reasons and more:

• The ease of establishing an account – Credit unions tend to have a very low initial deposit requirement for opening a savings account. This can be especially beneficial for families seeking to teach their youngsters to save their allowance or babysitting money. In many cases, a child will need to deposit less than $20 to become a member.
• The faster earnings potential – Aside from developing the habit of routinely depositing money into a savings account, parents often use these vehicles to teach children how their money can earn more. Since credit unions tend to offer higher earnings even on traditional savings accounts, children may see their pennies add up faster. In doing so, even a slightly higher interest yield can inspire youngsters to become lifelong savers.
• The member-only benefits that can be enjoyed – While programs for young savers may vary from credit union to credit union, most offer specific programs or benefits for school-age members. Some credit unions, for example, offer members-only scholarships. They may also offer incentive programs for good grades.

Teaching a child to save pennies at an early age helps develop smart financial habits that can serve throughout life. Credit unions can make teaching the lesson more rewarding for children and their parents.

Serving our community since 1931, a href=https://www.cutx.org/About-UsCUTX is owned by its members and operated in accordance with the laws governing credit unions in the State of Texas.