Children’s Accounts

kids accounts money

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!

RELATED: Local Credit Union Members Share How They Teach Kids About Finances 

 

Save, Give, Spend

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!

Custodial Accounts

• 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*

Education Savings

• Set aside funds for schooling purposes
• No tax benefit (unlike Coverdell ESA or 529 account)
• Ultimately no restrictions on use of account

Coverdell ESA

• 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

Saver's Sweepstakes

• 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