Credit Unions support youth financial literacy

All parents want their kids to grow up healthy.

But most of the time that discussion focuses on getting them to eat more vegetables and spend less time in front of screens. Too few think about their kids’ well-being in terms of their financial health.

In fact, one in four parents don’t even feel qualified to teach their kids about money because they themselves don’t feel like they’ve been good enough stewards of their own finances, according to a survey by the investment firm T. Rowe Price. And two-thirds of parents worry about setting a good financial example for their children.

A perilous future

Fewer and fewer workplaces offer guaranteed pensions, making saving for retirement the responsibility of the individual. Yet mobile technology and targeted online ads are making shopping instantaneous, increasing the likelihood of young people finding themselves in personal debt and ever-ballooning student debt. And almost no young person uses a checkbook, let alone learns to balance one.

On top of all that, only 17 states require a high-school course in personal finance. Perhaps that’s why 40% of young adults who live on their own still depend on their parents for money.

This is why credit unions are such a powerful resource for families. Credit unions recognize that kids learning to make smart money decisions is a quality-of-life issue, one that’s every bit as important as a healthy diet and regular exercise.

Credit union strong

That’s why every April credit unions across the country celebrate National Credit Union Youth Month. Unlike other institutions, credit unions are not-for-profit, and one of their seven foundational principles is education. They genuinely want to see their members succeed and gain financial strength.

So if you’re unsure how to teach your kids about money, start by talking to them. Look for teachable moments and bring the topic up naturally—without ever lecturing them.

Solicit their advice at the grocery store about what’s the best deal and introduce the concept of money early with an allowance. Allow them to spend some of the money they earn, but also talk to them about the importance of giving and saving. Open a youth savings account and explore the educational resources available.

This year’s theme for National Credit Union Youth Month is “Save Small. Dream Big. at your credit union.” It uses the image of a magical rainbow with a wish-fulfilling gold star at the end. We want to tell young members that their dreams are attainable, no matter how big they are.

KCCU has tools to help fulfill these dreams. With a youth saving account that earns compound interest, young members can deposit small amounts on a regular basis and watch their savings grow “like magic.” The earlier they start a savings account, the more it will grow, and the easier it will be to achieve their dreams. Learning this good financial habit at a young age will set them up on the path of successful financial well-being.

If you have been wondering how to empower your kids to save for their future, National Credit Union Youth Month is a great opportunity to start! Join us this April as credit unions across the country encourage youth to start saving regularly. This celebration is a great time to engage kids at Kellogg Community Credit Union and within your community to help them learn that saving, no matter how small the amount, can help them achieve their dreams

It could be one of the first steps you help your kids take toward a stronger, brighter future. Learn more about youth savings accounts at KCCU!

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