Growing Up Smart: How a Credit Union Can Help Build Financial Literacy at Every Age
I’ll be honest with you, I didn’t grow up knowing much about money. Nobody sat me down to explain the difference between savings and checking accounts, how a credit union differed from a bank, or what a credit score even meant. I learned most of it the hard way, by making mistakes I didn’t have to make. That’s probably true for a lot of us.
Here’s what I know now, after more than 23 years in the financial services industry: the earlier we teach young people about healthy financial habits, the better off they’ll be – for the rest of their lives. And the good news? Credit unions, like InFirst, are built for just that – being a financial partner through every stage of life.
Whether you’re a parent of a young child, the parent of a teenager, a young adult figuring it out on your own, or somewhere in between, there is a product or solution here that is designed with you in mind. Let’s walk through them together.
Start Early: Youth Savings
You’d be amazed at how much children can absorb about money just by participating! Watching a parent making a deposit, in a branch or online, is a great way to generate interest (pun not intended). Watching the balance increasing over time makes an abstract concept – saving – feel real.
Is a Youth Savings Account right for your child? Here’s what you need to know:
Available for children aged 0-17
$5 minimum opening balance
Dividends begin to accrue when the balance reaches $25
Youth Savings Accounts offer a higher dividend than standard Savings Accounts
Federally insured by NCUA, so every dollar is protected
The lesson that this account teaches goes way beyond earning interest. It’s really about discipline. It’s about setting a goal, putting money aside, and watching it grow. That habit, formed from a young age, is worth more than any rate we could offer.
Quick tip: Consider matching your child’s savings. If they save $10 from their allowance, match it with $5 from you. You’re teaching them the reward of saving money, which lasts a lifetime.
Lock in on Saving: Youth Certificates
If your child has been saving for a while, a Youth Certificate might be the next great lesson. Think of it as a savings account with training wheels. Money is committed to staying put for a set amount of time, and in return for that patience, you earn a higher dividend rate.
Let’s learn a little more about Youth Certificates:
Available from age 0-17
Youth Certificates require just $100 to open and start earning dividends – this is intentionally set at a more attainable starting point to make it easier for even the most casual young saver. 😊
Instills patience through delayed gratification. In a world where instant gratification is the norm, this account teaches the value of waiting.
This is a great way to save even before your child is ready to grasp financial concepts and before they think about how they would prefer to use the money Grandma sent in their birthday card.
First Steps in Spending: Teen Checking
Here’s where it starts to get really practical. Once children reach their teenage years, they may already be earning money from mowing lawns, babysitting, or taking care of pets. As important as it is to save money, children need to learn how to spend it responsibly (and have a little fun with their hard-earned money, too!) This account is a great first step into the world of budgeting, learning the differences between needs and wants, and the impact of spending.
Get to know our Teen Checking Account:
Available to children, 13+
To create a safe learning space, a parent or guardian is a joint owner on the account
Free Online Banking, Mobile Banking, Bill Pay, and eStatements
No maintenance fee or monthly fees
Access to our vast Shared Banking Network
Daily debit card transaction limit of $250 (a built-in safeguard for new spenders)
Let’s chat more about the joint ownership piece, because it is a feature, not a limitation. Having a parent or guardian as a trusted joint owner means you can monitor spending together, have honest conversations about where the money is going, and course-correct before bad habits form. That transparency is exactly how financial wellness is built.
Quick tip: Our Digital Banking platform (Online and Mobile Banking) puts account information right into your teens’ hands. As digital natives, they’re far more likely to check their balances, monitor transactions, and track changes if we give them the tools they’ll actually want to use – so that’s just what we did.
Establishing and Building Good Credit: Young Adult Visa® Rewards Credit Card
I say this a lot, and I will keep saying it…your credit score is like a shadow. It follows you everywhere – from applying to rent an apartment, buy a car, job hunting, or even establishing coverage with an insurance provider, you can’t escape your credit, so good credit from the start is imperative. The problem is that young borrowers can establish bad credit before they even know how (or why) to establish good credit because no one has ever shown them how to navigate that. You might have guessed it, but that’s where our Young Adult Visa® Rewards Credit Card comes in.
This card was designed specifically for young adults – it has all the bells and whistles that our Visa® Rewards Credit Card offers (including Rewards Points on EVERY purchase) but at a lower rate. Let that sink in – a lower rate designed to give young borrowers a fair shot. Here’s what you need to know about this card:
This point bears repeating – the Young Adult Visa® Rewards Credit Card earns Rewards Points on EVERY purchase – just like its “standard” counterpart. That means cardholders of all ages earn 4 points per dollar spent at Gas Stations, 3 points per dollar spent at Restaurants, and on Travel-related purchases, 2 points per dollar spent at Grocery Stores, Superstores and Wholesale Clubs, and 1 point per dollar at all other retailers – and that’s not even factoring in our annual Black Friday – Cyber Monday promotion which QUADRUPLES those points (yes, that means up to 16 points per dollar at Gas Stations!)
Rate as low as 9.90% APR
Quick Tips: Treating this card like a debit card and only spending what can be paid in full each month helps build credit without racking up interest. Pay on time, every time (payment history is the largest factor in determining credit scores). Aim to use no more than 30% of the available limit. Credit scores can (and should) be checked often. We also make them accessible in Online and Mobile Banking, so you can always know where you stand!
When used responsibly, this card is so much more than a payment tool – it’s a credit-building machine. And those Rewards Points? Those are a nice bonus for doing the right thing. Did I mention they can be redeemed for many things, but my favorite way to redeem them is for CASH!
If you’re ready to set your child on the path of financial wellness, we’re ready to help!
What ways have you helped your child learn healthy financial habits? Let me know in the comments below or email me directly.
Krista Kyte is a personal finance blogger and personal banker with over 23 years of experience in the financial industry. Krista is passionate about helping our members understand their financial situations. She writes tips that help consumers reach and maintain financial security and live the lives they've always wanted.