Did you know that April is Financial Literacy Month? This is a fantastic opportunity for us parents to take proactive steps toward helping our children build fundamental money management skills that will serve them well into adulthood.
Research shows that kids who receive financial education early on are more likely to have higher credit scores and less debt in adulthood. Learning financial literacy now will benefit them in the future when they need to apply for loans, find an apartment, purchase a car, etc.
Marina Rivera, the chief lending and retail experience officer for Members Choice Credit Union suggests that parents start teaching children about financial management as early as five years old! By this age, they can already begin to understand the basics for how saving and spending money works. By age 10, they’ll be ready to apply these habits in real-life situations with their very own checking account.
While it may seem daunting, opening your child a checking account is the first proactive step toward fostering a child’s financial responsibility and independence. Today, in partnership with Members Choice Credit Union, we’re exploring four reasons to open a checking account for your child.
Build a Strong Foundation
By opening a checking account now, you can instill the discipline and financial responsibility that will empower your child to make informed financial decisions. This lays an important foundation for their future well being and ability to manage their money for the rest of their lives!
Develop Responsible Habits
Your child is probably already earning money from different sources like babysitting, mowing the lawn, birthday gifts, or good grades. It’s important they learn how to spend, save, and budget that money wisely. Help them effectively manage that money with a checking account. They’ll learn valuable skills early on like how to deposit income and track their spending.
By tracking their money in the checking account, kids learn about budgeting and how to save for future needs and wants. You can explore student checking account options specifically designed for children and teens, as credit unions often offer tailored financial resources and competitive interest rates to help kids see their money grow. It’s important to look for features that will promote financial literacy and facilitate ongoing conversations between you and your child. Look specifically for an account with budgeting and saving trackers that encourage those proactive financial habits.
Promote Financial Independence
Once your child grasps basic financial concepts, they’ll feel more confident using them in real-life situations like transferring money online, saving up for things they want, and using a digital wallet if they happen to forget theirs at home. The most recent stats show that over 42% of 10-year olds have a cell phone. While each kid and teen might develop at their own pace, parents need to consider how finances have changed over the years and the ways kids today interact with friends, family, and businesses.
Build a Banking History
Having a solid banking history that begins in childhood can make it easier for them to apply for loans, rent apartments, or even get a job one day! It shows lenders, landlords, and employers that they’re responsible with their finances and can be trusted.
About Members Choice Credit Union
Members Choice Credit Union believes in providing sound financial solutions and resources and sharing their passion for supporting the community. As a full-service financial institution based in Houston, Texas, they have proudly served the West Houston, Katy, and Cy-Fair areas for over 80 years!
Now, when you open a FREE Student Saver Checking Account with Members Choice, your child will receive up to $25 as a bonus to start their account! This account is perfect for kids ages 10-17. Jumpstart savvy saving and spending for your child today and learn more at Members Choice Credit Union.
