Teaching kids about finances is a great way to help them be prepared for adult life. Concepts such as Spending and Saving are a good place to start. Marshfield Medical Center Credit Union is dedicated to helping our members of all ages. Below, find the resources available for kids at MMCCU!
Kids Savings Accounts
- Regular account listed under a child’s name
- Must be joint with parent/guardian until age 18
- Child allowed to access to transact an account
- Great way to teach children about managing finances!
- Custodian assigned to manage funds on behalf of child
- Funds can be turned over to child at age 18; must be turned over at age 21
- In WI, established under Uniform Transfers to Minors Act (UTMA)
- Can be used for tax planning purposes*
- Set aside funds for schooling purposes
- No tax benefit (unlike Coverdell ESA or 529 account)
- Ultimately no restrictions on use of account
- Comes with tax advantages* (check with a tax advisor for your specific circumstances)
- Save money for a child’s education expenses (tuition, fees, books, supplies, etc)
- Nondeductible contributions made on behalf of a child until the child reaches age 18.
- Earnings generated remain tax deferred while in the ESA.
- When the child uses the ESA assets to pay for qualified education expenses, the contributions and earnings come out tax free
- A prize-linked savings account offered by Wisconsin credit unions that lets consumers earn entries into drawings for cash prizes by making deposits into qualified savings accounts.
- Available to minors with a parent/guardian permission