Are you looking to teach your teenager about money management? A great way to do so is to help them open their own savings or checking account that allows them to learn important skills like saving, tracking their balances, and managing a debit card.
Our accounts are a great way to help your child learn about being financially responsible before they head off to college, the military, or the workforce.
PSECU offers two savings account options for youth under age 18 – regular savings and custodial accounts. Both qualify for a higher-yield savings rate, which is available on accounts opened for, or owned by, youth under age 18. Youth Savings Accounts will earn a 1.00% Annual Percentage Yield (APY) for balances of $.01 to $500.00. For balances of $500.01 and over, the Regular Savings Share APY will apply. Likewise, when the youth turns age 18, the rate will change to the current Regular Savings share rate.
Both of these account options are savings shares that require a minimum $5 share balance. Once an account is opened, a checking share that comes with free checks and a debit card can be added. The checking share does not qualify for the higher-yield dividend rate.
If you opt to have your child open a regular account, a parent can be added as a joint owner so you can monitor your child’s spending and help guide them as they work toward financial independence.
Think of a joint or custodial checking account as a bank account with training wheels. It allows youth to develop and put into practice the money skills they’ll need to navigate adulthood later in life. It also gives teens an opportunity to manage their money with the financial guidance of an adult – youth can speak with a parent or custodian about their financial decisions and learn how to handle responsibilities such as balancing a checkbook and checking a balance. These are essential building blocks to becoming a fiscally fit adult.
While neither account charges monthly maintenance fees for the savings account or the associated checking accounts, there are some important differences to be aware of between regular and custodial accounts. Here are just a few:
If eligible for membership, a youth age 12 and older can apply to open a regular account at PSECU in just a few minutes and then choose to add on checking. When they open an account with us, they can continue to learn smart money habits as they age and also enjoy the many benefits that come with credit union membership.
For more tips on money management, visit our WalletWorks page.