It’s never too early to start teaching your child good financial habits. It’s important that they understand how to handle money responsibly, such as learning how to budget and what savings are. You can help your child establish good financial habits by setting up a credit union account for them. The following is a list of benefits that your child can reap from having a credit union account.
Your Child Is Already a Member of the Community
Credit unions are different from banks in a number of ways. In order to open a credit union account, you have to be a member of the community or an organization. Once your child is a member, they are a member for life. This membership allows your child to be treated like family and not just another customer by people who are likely also members of the same community.
Your Child Will Learn Good Financial Habits
There are several ways that having a credit union account, can help your child learn how to manage their money. For example, you can teach your child how to review monthly statements. You can tell them about how deposits have to be greater than their withdrawal in order to avoid going into debt. You can also show them how their savings account can accrue interest.
Furthermore, as long as your child is under the age of 18, you can oversee and have access to their account. You can have it set to where you automatically transfer money from your account to their account. You can also get automated alerts that will let you know when the account dips below a certain amount.
Great Banking Products
Credit unions give back to the community in a variety of ways for instance, FCCU – First Community Credit Union, offers a credit card where 1% of all purchases made with the “GENIUS Card” will support education in the community. They also give their cardholder the option to choose what school district/private school they would like to support.
Additionally, credit unions have programs that can help your child prepare for college. For example, you can start a college savings account. You and your child can also apply for student loans and get them for a great interest rate. Many credit unions also have special debit cards for students so you can put a fixed amount of money into the account and your child can spend from that account. They also offer credit cards with low limits to allow your child to learn how to manage credit without risking too much debt.
Setting up a credit card account in addition to a banking account for your child means that they have the chance to learn about money management under your supervision.
Should your child keep the account as they get older, then their account can be used to take advantage of some of the more adult programs a credit union can offer. Things like obtaining loans, credit cards, and mortgages. Not only will they have access to these programs, but they will also be able to get them at a better interest rate. Credit unions are known for offering loans with lower interest rates than banks.
Setting your child up with a credit union account as soon as you think they’re ready to be in charge of their own money is a great way to help them learn how to be financially responsible. With a credit union account, they’re able to learn the ins and outs of banking in a forgiving environment where they can make mistakes. Providing them the tools to learn now will be setting them up for a good financial future. Furthermore, your child will have access to great banking products that will make their lives easier in the future in a community they’re already a part of.
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