Youth Savings Accounts: The Gift That Keeps On Giving

Financial Advice


By: FCU Team

The weather is a little chillier and the days seem shorter. Trees and street lamps are decorated in lights, and the malls are full of children and grownups alike swept up in the spirit of the season. It’s the Holidays!

Whether you celebrate Christmas, Hanukkah, Kwanzaa, or none of the above, the month of December is a festive time for everyone, one that brings together family, friends, and celebrates the giving and receiving of gifts. So, don’t let holiday shopping crowds turn your December cheers to jeers. If you’re trying to give a gift that’s a little outside the box, it might be time to skip the mall and visit your local credit union.

iStock_000047822080LargeWhat are you planning to get for the little ones in your life?

Whether you’re shopping for a grandchild, nephew or niece--or maybe a child of your own--instead of buying them another gift they won’t use, invest in their future by starting their very own savings account. Because they accrue interest and their value grows over time, starting a savings account early is really “the gift that keeps giving”. If you’re struggling with shopping for a child, big or small, consider these reasons why you should give them the gift of savings.

Money for Now and Later

Almost every kid will tell you that money and gift cards are some of their favorite presents. While cash and gift cards may provide them the freedom to choose a gift for themselves, the downside is that it’s not lasting. Once the money is spent, it's gone. 

$40 in your pocket is not the same as $40 in a savings account. But sadly, most savings accounts offer less than .1% annual percentage yield, or “APY”. Since Youth Savings accounts often offer special rates not available for traditional savings plans, it’s a great idea to take advantage of higher yields that you can usually only get with bonds and CDs.

By making the initial investment in a savings account and letting it grow on itself, you’re not only giving a child money for the present, but for later as well. They’ll have the access to money should they want to spend it, but they’ll also learn that value of savings while their money collects interest, rather than dust.

Something They Learn From

The value of this present can’t be fully realized just by opening an account and letting it exist without any input from your child. Learning to be responsible with money is a life-long skill that everyone should have. And it's never too early to start developing it, in fact, the earlier you begin, the more likely the lessons will stick.

According to a 2018 study from Purdue University, most people have established, what will likely be, lifelong financial habits by the time they reach age 7. Opening a savings account for the child in your life is an excellent chance for them to begin learning how to save and manage their money while they’re still impressionable. If they have a form of income, such as an allowance, or earning their own money, encourage them to make deposits and withdrawals to understand the basics of money management.

A savings account from Florida Credit Union comes complete with financial education tools and resources, and even a free piggy bank* where kids can keep their money saved before they bring it into the branch to make deposits. And with online and mobile banking access, kids, parents, and guardians can monitor the account in real time.

It’s More Meaningful

As the old saying goes, "it's the thought that counts."

A savings account is a thoughtful and unique holiday present that can teach a child  the importance of money management, delayed gratification and more importantly, compound interest. Think about all the gifts you've given, or the gifts you received as a child. How often did they end up in the closet after only a few weeks, or obsolete and forgotten after the next edition was released? A savings plan is a living, breathing gift that can be useful for any season of life.


So instead of another video game or pair of socks this holiday, consider giving the children in your life the gift of savings

Learn more about Youth Savings Accounts offered by Florida Credit Union, complete with high interest and educational tools to help you and your child learn more about savings.