Five Important Reasons Your Child Should Have a Savings Account

This is the perfect time to teach your kids about responsible money management. One of the best ways to do so is by opening a savings account in their name and helping them learn the basics of smart saving habits. Here are some of the reasons why it is a good idea to open a youth savings account for your child.

Teach the basics of saving

A TXDPSCU Youth Savings Account is a great tool to help your kid learn the value of saving money. By depositing money into the account regularly and watching it grow, your child will learn the importance of setting money aside for the future. An added benefit when opening our youth savings is that your child will receive extra cash when they earn an ‘A’ in Math, Science, English, and History, which is deposited into their account.

Teach kids about money management

When your child has their own account, they begin learning how to budget their spending, in a responsible manner. They will also learn how to manage an account at a financial institution, including balance tracking, depositing money, and starting to form an understanding of using a debit card.

Help kids save for a short-term financial goal

Turn financial lessons into lifelong habits by having your child use their account to practice saving up for a short-term goal. Your kid can now set aside money that is earned from an allowance, a part-time job, or gifted to them for a birthday until they have enough money saved in their account to fund their purchase.

Prepare for the future

Starting a savings account at an early age can prepare your child for unexpected expenses in the future. As they mature, their needs and expenses go up as well, and the more you can help them prepare, the better off they will be in the future.

Build responsibility and independence

By managing their own money and making decisions about how to save and spend it, your child will learn valuable life skills that will serve them well in adulthood.

To open a TXDPSCU Youth Savings Account for your child at Texas DPS Credit Union, call, click, or stop by today.