By Ayesha Haider, BA, MBA, AFC© Candidate, FINRA Military Spouse Fellow For most of us, receiving a tax refund is a...
7.6 million children live in households that do not have a bank or credit union account. Studies show that financial account experience, combined with financial education at an early age can shape a young person’s habits in a way that can last for lifetime1
Developing healthy financial habits early
Long-term health money habits begin to develop in childhood, as early as preschool.2
Creating opportunities to save regularly
Access to financial education programs and savings accounts provided opportunities to develop positive long-term financial behaviors.3
Taking a hands-on approach
Students who at an early age participate in financial education programs that include real-world financial experiences are more likely to develop positive attitudes about money.3
Benefits beyond money
Children with savings have greater expectations for education beyond high school. 4
Approaches to Youth Savings and Financial Education
Youth savings and financial education programs can help reinforce positive behaviors that can help young people become financially capable adults.6
Students-run credit union or bank branches inside schools that offer students basic savings accounts.
Classroom Presentations and Workshops
Classroom activities and lessons focused on healthy financial habits, like saving and spending, credit and debit, and employment and Income.
Lessons Learned At Home
Children learn from watching parents or caregivers earn shop save and borrow. Parents can talk to children about creating positive money habits and can reinforce lessons learned at school through at-home activities such as saving money in piggy banks, making spending choices (real or pretend) and playing interactive games together.
Simulate “the real world” with a hands-on, interactive approach to learning. Participants choose a career path and receive a corresponding salary which they must then use to balance a budget while making simulated real world financial decisions (e.g. buying or leasing a car, life insurance, owning or renting a home).
Youth Employment Programs
Receiving a first paycheck is the perfect opportunity to learn about money management. This teachable moment can include personal finance concepts such as automatic saving, budgeting and avoiding money mistakes.
Community-Led Savings Programs
State and local governments, as well as non-profit organizations, help youth save for post-secondary education through youth savings programs, such as 529 Plans or school district-wide savings opportunities.
You Savings Accounts
Accounts designed for youth have account terms and conditions explained in an age-appropriate manner and feature no minimum or starting balance, zero or low monthly fees, free access to online/mobile banking, and free and unrestricted use of in-network Automated Teller Machines (ATMs).
Did you know?
Studies show U.S. youth struggle with understanding financial concpts and applying then to real-life financial situations.5
Credit unions federally insured by the National Credit Union Administration (NCUA) offer a safe place for you to save your money with deposits insured up to $250,000 per individual depositor.
Many of the sources listed below are courtesy of Financial Literacy and Education Commission members. www.mymoney.gov
6 Linking Youth Savings with Financial Education: Lessons from the FDIC Pilot (2017) – Federal Deposit Insurance Corporation
7 MyCreditUnion.gov: https://www.mycreditunion.gov/tools-resources,
Money Smart: https://fdic.gov/moneysmart,
Money As You Grow: https://www.consumerfinance.gov/consumer-tools/money-as-you-grow/,
National Credit Union Administration | Office of Consumer Financial Protection | 800-755-1030 | MyCreditUnion.gov
Information appearing in this article is obtained from sources we believe are reliable. The information may not be a complete statement of all available data and is not guaranteed as such. Marine FCU is not responsible for the contents of this article and advises its membership to investigate claims before following the information provided.