April is National Credit Union Youth Month, so we wanted to take a moment to highlight the importance of spending the time and energy to make sure your kids have some basic knowledge about money.
Did you know?
- From 2004 to 2009, the median credit card debt among college students increased 74%
- A report on the results of a financial literacy exam found that high school seniors scored on average only 48% correct.
- A survey of 15 year old’s in the United States found that 18% of respondents did not learn fundamental financial skills that are often applied in everyday situations, such as building a simple budget, comparison shopping, and understanding an invoice.
With such a staggering knowledge gap, it’s easy for kids to grow up and fall victim to scams, high interest rate loans, and rack up an enormous amount of debt.
So, at what age is it right to start teaching your kids good financial habits? The short answer is – right now.
By age 3, your kids can grasp some basic money concepts. By age 7, many of their money habits are already forming. No matter what their age, let’s take this opportunity during National Credit Union Youth Month to start!
Does your child have a savings account or a safe place to deposit any money they receive?
Teaching your child the importance of saving money for a rainy day, should begin at an early age. If your kids don’t have a savings account, get them started with one as soon as possible.
First Financial offers a First Step Kids Savings Account for children up to 18 years of age. There are no minimum balance fees, and dividends are posted quarterly on balances $100 or greater.*
The moral of the story is the following: Take the time during National Credit Youth Month, to talk to your children about finances, budgeting, and saving money. It’s never too early (or too late)!
*As of 7/2/2020, the First Step Kids Account has an annual percentage yield of 0.03% on balances of $100.00 and more. The dividend rate may change after the account is opened. Parent or guardian must bring both the child’s birth certificate and social security card when opening a First Step Kids Account at any branch location. Parent or guardian will be a joint owner and must also bring their identification. A First Financial Membership is open to anyone who lives, works, worships or attends school in Monmouth or Ocean Counties.