Do you blow your cash and wonder where you spent it? Is there something you really want to buy, but don’t know how to save to get it? Or, maybe you DREAM of bigger things that are a bit far off in the future, like buying a car or saving for college.
You need "money skills" and we can help you LEARN what you need to do to SUCCEED.
What to Do with Your Money
Saving up as much money as you can is good, but not great. To make sure you use your money wisely you need to know what you want to do with it. That’s when it helps to set goals.
3 Money Goals
Money for Now — $20 or Less
You’ll use this money to go out with friends or treat yourself. If you usually spend money too easily, you don’t want to carry much cash. Leave it at home in a safe place.
Money for Later — $21 to $100
This is too much cash to keep in your room. You’ll use this money for things that cost a bit more. Put it in a Savings Account. Savings accounts are safe and insured. You can add more to your account or take out what you need at anytime.
Money for the Future — More than $100
When your savings grows to more than $100, you can put it into higher-yield savings accounts. These accounts earn higher rates. As a young saver, you can use Certificate accounts to grow your money faster. Certificates are similar to savings accounts because they are insured and safe. They are different from savings accounts because they require that you keep your money in the account for a specific time, usually from 3 months to 5 years.
How Money Grows
In return for keeping your money at the credit union, the credit union pays you money in the form of dividends. Dividends are paid as a percentage of your deposits. Different types of accounts pay different dividends. Each account will have different requirements. Usually, the easier it is to put money in (deposit) and take it out (withdraw) the lower the rate will be. Dividends are usually deposited into your account each month.
Where to Keep Your Money
Do you keep your money in a piggy bank? A box under your bed? Having lots of cash lying around is risky. You might be tempted to spend it or even worse, it can be lost or stolen.
A savings account is the safest place to put cash that you’ll use later. Savings accounts are safer than keeping your money at home. Plus, your money will grow as it earns dividends. A savings account allows you to deposit money or withdraw money at any time.
Crisp Cash ATM-Only Card
You can have your own ATM card! The Crisp Cash ATM card is the easiest way to get money from your savings account when you need it.
It’s not a credit card or a check/debit card, so you won’t use your Crisp Cash card to buy things. The Crisp Cash ATM-Only card simply allows you to take money out of your account from an ATM. It's a great way to learn how to manage your money without carrying a lot of cash.
The Crisp Cash ATM-Only card will only be issued with your permission. It’s the perfect tool to introduce your child to managing their own finances, while you’re still able to monitor their growth and help with the learning curve.
Got big plans, but just getting started? An easy way to reach your goal is to open a savings account just for this goal. The “You Name It” Savings Account is exactly that. You can even give it a special name like “My New Bike” or anything you like.
Learn-to-Earn Savings Club
Certificate accounts pay higher dividends than regular savings. To open this fast-earning account you only need to deposit $25. After that, you can add money to help your savings grow even more. You’ll need to keep your money in this account for at least 12 months—that’s a whole year. Once the year is up, you’ll be pleased to see how much you’ve saved.
It’s Just as Much Fun to Give
Don’t forget about others. Include gifts for friends and family and donations to charities. Donations can be cash gifts or purchases like brownies at a bake sale.
Reaching your goals is easier when you have a written plan. In the world of money, a plan is known as a budget. This budget worksheet helps you keep track of where your money is coming from and going.
Tip: Even though expenses may not occur every month, like gifts/charity, it’s a good idea to budget some amount for these expenses each month. That way you spread the expense over time. When it comes time for the expense, you’ll already have the money to cover it!
Keep it Close, Keep it Safe
Theft can happen to anyone, even you. Protect yourself and your money by following these important steps:
Keep your parents/guardians in the know. They are your best resource for learning how to manage your money. They can help you reach your goals and make sure that you are using your accounts wisely.
Don’t talk about money with anyone else. Don’t go around bragging about how much money you have. Bragging turns some people off, but others might think that you’ve got money to spare. They may ask you for money or worse, try to steal it.
Don’t share PINs and passwords. Personal Identification Numbers (PINs) and passwords are secret codes that you shouldn’t share with friends or strangers because they could take that information and pretend to be you – in other words, they could take your money.
Watch out for the wolves. Sometimes thieves might try to trick you into giving out your PIN, password, account number, social security number or other information that can give them access to your money. They might disguise themselves in an email or phone text that looks like it comes from the credit union, a bank, or a store. Don’t ever give this or other personal information out. Always check with an adult first.
Other Helpful Links:
U.S. Mint: http://www.usmint.gov/kids/
We request that individuals under the age of 13 not provide personal information through the site. We do not knowingly collect information from children under the age of 13 without parental consent. Visit the Federal Trade Commission website for more information about the Children's Online Privacy Act (COPPA).