Why to Open an Account for Your Child

Marshfield Medical Center Credit Union > Blog > Why to Open an Account for Your Child

At MMCCU, we are proud to be a local credit union. Part of our mission is to help young people get started on the right financial track. We can help you and your child start saving now!

Teaching your kids about spending, saving, and other money-related topics is important.

Around kindergarten, kids start understanding that money has value and is important. Opening a bank account provides an opportunity for parents to teach kids about money and how to handle it responsibly.

“For example, if a child asks for a new toy, use that as an opportunity to teach them about saving and spending,” said David Murphy, VP of Finance & Risk. “They will need a parent or guardian to open a custodial or joint account, which the child can then take ownership of when they are old enough.”

With parents receiving Economic Impact Payments from the government, this could be a good time to set up an account.

“If you’re receiving an Economic Impact Payment for your child, consider spending or using half of it and opening a bank account for them and depositing the other half,” said Murphy. “It doesn’t have to be a lot of money, but teaching those concepts can help get your child on the right track for later in life.”

Another great option is for parents to open an education savings account to help save for college.

“It’s not a tax-sheltered account, but it’s simply a separate savings account that can be used to build up money for education purposes,” said Murphy. “It earns a slightly higher rate on that account than our regular savings account as well.”

MMCCU is here to help! Contact us today to learn how to set up an account for your child.

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