Managing money is a foundational life skill. There are so many factors involved and so many open-ended questions at play. How much should you be saving? When is it worth spending more? How do you keep spare change from burning a hole in your pocket? It takes years of discipline and training to perfect this skill, and ongoing self-control to maintain it.

That’s why it’s best to give your kids a head start on money management and saving. As a parent or guardian, remember that the lessons you plant today will take root and blossom, enriching your child’s life for years to come.

Here at Cooperative Teachers Credit Union, we understand the enormity and difficulty of this task, and we are proud to offer specialized savings accounts that are designed just for kids.

We know that different ages and stages have different needs. That’s why we offer Kids Club Savings Accounts for children aged 0-12, as well as REAL Teen Checking Accounts for teens aged 13-18.

Mom teaching young son how to do something on a laptop computer

Our Kids Club savings account can be opened with just a $20 deposit! We’re more than just a place for your kid to keep their money, though. We also want to help your young ones learn all about money management. To do that, we go out of our way to make banking fun and kid-friendly. When your child has an open youth account with Cooperative Teachers Credit Union they also have free access to our quarterly newsletters mailed straight to your door, coloring contests, CTCU anniversary incentives and more].

When adolescence overtakes childhood, kids need a sense of independence and autonomy. We get this. That’s why it only takes $5 to open a REAL Teen Checking Account and account holders are eligible for a debit card with maximum daily limits that can be set by parents/guardians. Parent/Guardians are able to view transactions, transfer money from their CTCU account straight to their teen’s account, set up automatic allowances and text alerts if the account reaches a predetermined balance. Learning responsible saving habits at an early age will prepare your kids for a sound financial future.

Ready to open an account for your child? Does your child already have one? Read on for three steps to take for ensuring your child gets the most out of a new or existing account:

| Set a goal

Now that your child’s money will be sitting in an account instead of a piggy bank, let her use this opportunity to save up for something big. Sit down with her and discuss what she’d like to save for. You can create a long-term goal, like saving up for college or for a first car. Also establish a short-term goal, like a new gaming console or a hoverboard.

Set a date for your goals, and then set up a savings calendar for illustrating how much money needs to be saved each month to reach the intended target by the designated date. Discuss ways to add to the savings, being sure to include money from birthday gifts, summer jobs, allowances and chores.

 Dad and son sitting on couch with laptop and tablet smiling at each other

| Bank together

Whether your child is a first-grader or a teenager, if this is their first time owning an account, they’ll need you to show them the ropes.

Always bring your children along with you when you stop by Cooperative Teachers Credit Union to deposit their savings. Show them how it works and let them see the account balance growing. If your child asks you to withdraw money from their account, make sure they see how this translates into a dip into their savings.

For teens, you’ll need to walk them through that first deposit and withdrawal. When they’ve probably got the hang of it, it’s time to take a step back and let them be on their own. They’ll feel like a million dollars managing their account independently.

However, share with your teen that every swipe of their debit card also means a dent in their account balance. Also be sure to warn kids of all ages about security. They should know to never share their account information with anyone, and to keep their debit card in a safe place.

| Monitor your child’s activity

Don’t aim to be a helicopter parent, but do keep an eye on your child’s account. If he’s depositing a lot less than planned, ask him where his money is going. If your teen is maximizing his daily ATM allowance, speak to him about money management and impulse purchases.

Your teen’s daily withdrawal limit may need occasional adjustment, so keep a careful watch on spending to see if any modifications are needed.

Remember: Every financial lesson you teach your child today equips them with money management skills for a lifetime.

Your Turn: How do you maximize the benefits of having a youth account for your child? Share your best tips and techniques with us in the comments!