Skip to Main Content
Original article: Early Financial Education: Start with a Kid’s Savings Account - Denver Post Content
These days, raising kids into financially literate adults means taking advantage of modern tools, all while still keeping things simple and interesting. In this article, we’ll cover the foundational first steps toward raising kids with a healthy, educated approach toward money. The first step? Opening a savings account.
It’s not enough to just talk to your child about finances–giving them real life, positive experiences around money management is an essential step toward raising money-savvy adults. Having a real savings account to deposit any chore earnings and lemonade-stand proceeds makes their eventual purchases feel even more special. Not to mention, parents: those toy store aisle conversations can shift from them saying, “But I want it!” to you responding, “Awesome! Have you saved up enough to afford it?”
Banking for kids doesn’t need to be complicated. In order to get your child excited and on-board, keep it simple, attainable, and successful: just a savings account will do right now. As they grow in financial literacy, they can grow in available tools and resources, like options that generate higher returns but come with higher risk. (But that’s for later–we can pick up that conversation again when they’re young adults.)
When it comes to interest, time is your best friend. Caffeine may keep you fueled for all the chauffeuring to and from school and activities, but even just investing the cost of a few AM latte runs every month can grow major yields for your child’s future over time. Here’s some quick math: just $25 invested per month over 18 years could generate $5.5K! That could be a paid a security deposit and a few month’s rent on their first apartment, all for a few strategically skipped coffees. Talk about a smart head start. Not sold yet? Take a few minutes to play around with our budgeting calculator.
Becoming a financially literate adult is kind of like learning to drive a car: a whole lot scarier if you don’t first start on a tricycle, then a bike, then maybe a spin or two around in a golf cart, then a parking lot driving session first. So, start small and start early: your child can grow into banking with Westerra, with access to a strong network of trusted professionals. We’re here to help navigate with turn-by-turn directions on the metaphorical road trip of life’s finances.
Budgeting: a skill that’s essential for kids to learn, but tough to teach without the right tools. Not to mention, hypothetical kitchen-table talk doesn’t go as far as offering up the real thing. When a child has their own savings account, you can have real, meaningful check-ins and watch as the money grows monthly. Conversations about projected income become real, and big ticket item purchases can be planned and executed.
We’re all about making financial education fun. That’s why we’ve partnered with the Zogo app, which offers bite-sized lessons and interactive quizzes on various financial topics, rewarding users with gift cards and other incentives for their progress. By gamifying the educational experience, Zogo helps users of all ages build essential financial skills and knowledge in a fun and motivating way. Get started today to earn “Pineapple Points” towards earning rewards! If your family wants to take a test run before opening the real thing, this game and lesson plan helps build an essential understanding of budgeting for older kids and teens. Wherever you start, make it fun! They’ll be huge fans of financial budgeting when they finally cash out for that new bike or gaming console.
The first big step is to decide it’s time for your child to have their own savings account. (Many finance experts say the right age is around 9 years old.) The second big step is to decide what kind of institution to open with, and what kind of account will match your family’s goals. Stop into your local Westerra branch any time–we’re happy to help answer questions and set up the right account for the right needs.
Some folks think banks and credit unions are the same. While both have government backing that insures funds up to $250,000 (the FDIC and NCUA respectively), and both have savings accounts for kids, banks and credit unions have some key fundamental differences. Read up on the key differences, and why credit unions are the better choice for a kid’s first account.
Westerra’s a non-profit organization, whereas banks are for-profit companies. But what does that mean for you, exactly? Good question. It means we can offer the best possible terms, without trying to nickel and dime your account to benefit owners or private shareholders. Here, our members are the shareholders–so when you win, we all win.
Does it seem crazy to slap needless, excessive fees on a child’s savings account for having too low of a balance? We think so. Choosing a non-profit credit union can mean a more competitive annual return and limited fees: more community supporting community, less big bank shenanigans.
There’s power in how we choose to use our money. By banking with a non-profit organization, you’re choosing to further support your local communities. Volunteer events, donations, and other initiatives aiming to improve the financial education of Coloradans is an essential part of Westerra Credit Union’s mission, and it’s all possible because of people like you.
While most adults have both a checking and savings account, it’s not quite the same for kids. Odds are, kids aren’t doing the kind of money management that would require a checking account right now. We recommend both children and teens to open a savings account with a higher interest rate, so they can get paid for their good saving habits.
Get their financial future started on the right foot. Bring your kiddo into your Westerra branch–let’s get their first saving’s account opened.
Everyone knows the importance of saving money. But start looking into specific savings account options and interest-earning opportunities, and suddenly everything starts feeling a whole lot less straightforward. Luckily, you have plenty of options.
Whether you’ve got a 4 year old or an 18 year old at home, it’s never too early (or too late!) to start talking about money management.
Save the Day. Help your child set up an account
We are excited to announce that we will be hosting our annual all staff meeting and afternoon of service, "Volunterra" this Thursday from 12:00-5:00 P.M. MDT. During this meeting staff will work together to build kits to help support our community.
Your savings federally insured to at least $250,000 and backed by the full faith and credit of the United States government. National Credit Union Administration, a U.S. government agency. Westerra is only 1 of 3 credit unions recognized on Newsweek's "2024 Best Regional Banks and Credit Unions" annual list.
Equal Housing Opportunity.
Mailing Address:
P.O. Box 9408