5 benefits of youth accounts for kids and teens

As a parent, guardian or mentor, you’re probably wondering how to introduce the kids in your life to the financial world. There’s a lot for them to learn, and opening a youth account is a great way to start building a foundation. Among other benefits, it’ll give them a chance to do several things:

1. Grasp the basics of money management

Some people make it all the way to adulthood without having the opportunity to learn basic financial concepts. With a youth account like Kickstart, kids ages 6-17 can get ahead of the game by practicing everyday money management.

• Earn “income”: Pay them straight from your account, whether it’s weekly allowance or a reward for doing chores or earning good grades.
• Build a budget: With a customizable, easy-to-use online tool, your child can set savings goals and get a clear picture of how much they should be spending.
• Use a debit card: With their own checking account balance they can see in Online Banking, they’ll feel the weight of every purchase and understand the responsibility that comes with it.
• Pay back “loans”: You can lend your child money to simulate the experience of paying back a loan and help them understand how interest works. You can even choose your own interest rate!

Mastering these financial skills prepares kids and teens for the real world, but it also gives them a sense of accomplishment and independence. The confidence they’ll gain could spread to other aspects of life and even motivate them to dig deeper into their financial education!

2. Spend safely with parental controls

Getting your first debit card is exciting, so even the most responsible kids could be tempted to go overboard on their spending. With Kickstart Checking, you can protect them from a financial fiasco by:

• Setting spend limits on their debit card usage
• Locking and unlocking their card as needed
• Customizing alerts about their account activity

You can do all of the above and monitor your child’s account anytime in Online Banking or on our mobile app.

Tip: With fraud at an all-time high, you and your child can take advantage of free educational content (on our website and the Kickstart app) about spending safely and avoiding financial scams.  

3. Understand real-world costs

Before kids learn about finances, they understandably have no frame of reference for what things cost — or how much time goes into earning money. Once they have their own checking account and debit card, they’ll get a chance to:

• Think about what they earned in exchange for the time spent: For example, you pay them a weekly allowance of $20 for two hours of chores. Next time they want to buy something worth $20, they’re more likely to think about the work they put into earning that money, and they might decide to save it for something more important.
• Pay more attention to price tags: Let’s say your child wants a new video game console. When they see it’s worth 25 of their allowances, they’ll have more appreciation for the value of a dollar.
• Plan for the days ahead: When kids are aware of their weekly or monthly earnings, they’ll start thinking ahead. Do I want to have spending money when I hang out with my friends on Saturday? How much should I set aside?

4. Learn in a fun, rewarding way

When kids are motivated to learn, there’s nothing they can’t do. Youth accounts like Kickstart allow them to:

• Earn trophies for financial feats: A game is probably more appealing than money management, so that’s the experience you can give them! They’ll earn trophies for accomplishments like setting a budget, meeting savings goals and paying off loans.
• Get paid for accomplishing tasks: It’s a great feeling for kids when their hard work pays off — literally. Plus, if you’re rewarding them for chores and grades, they can recognize the importance of contributing at home and going the extra mile at school.
• Watch educational videos: Their account comes with a free app where kids can learn about financial topics with fun content that appeals to them.

5. Gain confidence and independence

Financial literacy for kids is more than understanding earning, spending and saving; it’s about the sense of independence and self-esteem that comes with it. When they’re well-versed in financial concepts, they’re more likely to be excited and prepared for future milestones like buying a car or moving into their own home.

Tip: Get your child excited about a youth account by showing them all their debit card design options! They can express their individual style with doodles, furry friends, the Arizona Cardinals and more.

Kickstart: fun, educational and free!

A youth account should be exciting for kids and easy on your wallet! That’s why the Kickstart program — including your child’s checking account, debit card and Kickstart app — is free for Desert Financial members. Plus, you don’t have to be their parent to serve as the adult joint account owner. Get started today.

Check out Kickstart!