How Can You Teach Your Children About Money?
- Open a youth savings account with GO Federal Credit Union. To make it more meaningful, bring your children to GOFCU so they can be involved with opening their account.
- Give a weekly allowance to offer hands-on money management experience. Knowing they’ll regularly get a set amount of money will make it easier for your kids to learn how to save.
- Bring your children to GOFCU to make deposits and withdrawals to build money management skills.
- Let children save their money to buy something they really want.
- Encourage your kids to use their own money to buy the “extras”: specific clothes, accessories, school supplies or games.
Teach Smart Spending
- Discuss and establish age-appropriate guidelines for purchases.
- Discuss savings plans for long-term goals, such as education and cars.
- Encourage children not to buy on impulse. Have them stop and consider if they really want or need the item right now and how long it took them to earn the money they are about to spend.
- Allow working teens to spend their own money. However, require them to pay for more of their expenses to prepare them for going out on their own.
- The most important thing to teach children is to pay themselves first. Help them set an amount to save on a regular basis. Consider matching that amount.
- Help young children set goals they can reach in a short time period, perhaps just a few weeks.
- Help older children set goals using longer time frames. However, make sure their savings goal still allows them enough spending money to enjoy themselves while sticking to their savings plan.
- Discuss ways children can earn and save money.
- Allow children to withdraw money from their savings accounts for appropriate reasons to demonstrate the purpose of saving money.
- Encourage teens to build an emergency fund for unexpected emergencies – like car repairs.
How Can I Prepare for Future Education Expenses?
There are several ways you can prepare for your child’s upcoming college expenses. The earlier you start, the more prepared you’ll be and the more money you’ll have accumulated.
Coverdell Education Savings Account (formerly called an Education IRA)
- A great way for you or anyone to invest in your child’s education. (Contributors must meet certain income requirements.)
- Maximum $2,000 annual contribution.
- Contributions may be made for a child until they reach their 18th birthday.
- Withdrawals are tax-free and penalty-free if used for qualifying educational expenses.
Click here to learn more about our Coverdell Education Savings Account.
529 College Plans
Many states offer 529 college savings plans, also known as Qualified Tuition Programs.
Click here to learn more about 529 plans.
Automate Your Savings
Set up automatic payroll deductions into savings or investment accounts opened specifically for your child’s education. Each month a little money will go in, earn interest, and start adding up quickly!
Start Thinking About Scholarships Early
As soon as your student reaches high school, it’s time to start researching and planning for scholarships. Look at online resources. Speak to a guidance counselor at your teenager’s school. Talk to other parents. Counsel your student about keeping his/her grades up and encourage them to participate in extracurricular activities. Make a schedule of when you’ll need to begin submitting applications, writing essays, gathering records, etc. The more planning you do, the more likely your student will be to win scholarships and have a more stress-free senior year.
Does GO Federal Credit Union Offer Kids or Teen Programs or Accounts?
GO Federal Credit Union offers a number of youth accounts to encourage children to save and to teach them how to manage their money.
- A savings account exclusively for children ages 0-12 years old
- A minimum of $25 to open the account and to earn dividends
- Additional club benefits include a special section for kids in GO newsletters, a birthday greeting card, a special website or kids, contests with great prizes and more
Smart Start Club
- A savings account exclusively for teens ages 13-18 years old
- The savings account is only $25 to open and starts earning dividends right away
- Checking account features include no monthly fee, unlimited transactions, ATM card with approval and more
- Additional club benefits include a special section for kids & teens in GO newsletters, a special website for teens, contests with great prizes and more
To open one of these great accounts, click here. Print the application and complete it with your child. Then visit one of our offices and open a youth account today.
Have questions? We’re happy to help. Click here to Live Chat or call 214.742.6551.