Benefits of a Youth Checking Account

The Benefits of a Youth Checking Account and Debit Card

Mother and son doing financing together

Introducing Kids to Financial Responsibility

As a parent, it's important to teach your kids money management skills that will benefit them throughout their life, and one of the best ways to do that is with a youth checking account. It can be a great tool for teaching your kids about finances and responsibility early. Accounts like these allow you and them to effectively monitor their spending in real-time and develop responsible money habits while getting an early start on their youth financial literacy skills.

With a True Youth Checking Account at Austin Telco Federal Credit Union, your child can deposit the money they earn, monitor their balance, and easily track their spending. With mobile banking and online banking options, your child or teen can easily access their account information from their phone or smart device.

By teaching your kids financial responsibility now, you can help better prepare them for financial independence in the future. This allows them to better understand how to manage their money and be better equipped to handle finances as an adult, helping them to avoid financial problems in the future.

Why Getting Your Child A Youth Checking Account Is Important?

Creating Avenues To Financial Success

If you're a parent, you may be wondering what the steps are to teach your child about managing their own money. One important step in this process is opening a checking account for your child so they have a safe place to keep their money while still having access to their funds via their own debit card. A debit card is an excellent way for young people to learn how to manage money responsibly without the risk of theft or losing their cash.

The Austin Telco True Youth Checking account is not only beneficial for kids, but it also makes things easier for parents by allowing them to monitor their child's spending habits within preset account limits. Parents can also transfer money into their child's account, making managing allowances or unexpected expenses easy.

Debit Card - Mage Money - ATM Image

How Do Debit Cards Help Young People Manage Money?

Practice Real-Life Money Management

A debit card provides kids a simpler and more secure way to manage their funds. Instead of the potential risks and inconvenience of carrying cash, they can easily make purchases using their debit cards, leveraging their hard-earned money without fretting about loss or misplacement. For young adults and teens, the combination of a checking account and debit card extends these benefits further, enabling them to set up direct deposits seamlessly for their summer jobs.

Parents can also choose the type of youth checking account that works best for their kids. Austin Telco has youth checking accounts with debit cards that mimic those issued to members who are 18 years old and older, or youth checking accounts with a debit card set up with “training wheels.” With these “training wheels”, parents can monitor transactions and set spending limits to ensure their child stays within a budget and understands the concept of spending within their means. Additionally, using a debit card responsibly can serve as a starting point in building your child's financial foundation while also teaching them about budgeting and saving.

Finally, having a youth checking account is a great way for your child to get hands-on financial experience. For those who learn better by doing, youth accounts are an excellent opportunity for them to gain real-world experience managing money without long-term consequences and to learn about potential financial mistakes that may occur. The skills and knowledge gained can last a lifetime and help them avoid common mistakes made later in life.

Family watching daughter ride a bike

How Austin Telco Makes It Easy With Training Wheels

Protect Your Child's Money Through Security & Parental Controls

As mentioned previously, we make it simple for you to monitor your child's spending and set limits, with the option of having “training wheels” attached to your child’s debit card. Our True Youth debit card is specifically designed to help kids learn how to manage money in a safe and secure environment.

With Austin Telco, you can decide whether to open a regular checking account for your kid and give your child the freedom to spend with a regular debit card or, as previously mentioned, you can open a True Youth Checking Account with a debit card that has limits (AKA “training wheels”) attached to ensure no major changes are being made in a single day. The True Youth Checking Account debit card is specifically designed to provide your kids with a secure and responsible debit card experience. Our True Youth debit card is a version of our regular debit cards but with added protection and monitoring. It has a daily spending limit, allows a limited number of daily transactions, and does not allow international purchases - so the card will decline if the limits are reached or if an international purchase is attempted. You can also set up alerts to notify you in virtual real-time whenever there is a change made to the account. Knowing that your child is managing their finances responsibly gives you peace of mind while allowing them a little extra freedom.

Our youth checking accounts and debit cards are a great way to give your child the tools they need to succeed financially. Your child's financial future is just one step away. Contact the Austin Telco team to find out how you can get started today!

Teach kids financial responsibility.

Advantages of Using a Youth Account to Teach Kids Financial Responsibility

Getting Them Ready For Real World Financial Independence

Starting early with your child's financial education can give them positive habits that will become a foundation for their future. Still not sure if they’re ready? Here are some advantages of using a youth account to teach kids financial responsibility and how you can equip them with the right skills they need to succeed:

  1. Builds Good Habits
    Setting a budget and sticking to it teaches your kids how to prioritize their expenses, understand the value of money, and control their spending. You can also teach them about the importance of credit and how to make responsible borrowing choices to avoid debt.

  2. Encourages Independence
    Teaching your kids how to manage money will give them the necessary skills to make informed financial decisions and be better equipped to control their finances. Starting early will give them the confidence they need to manage their money responsibly as they grow older.

  3. Provides a Sense of Responsibility
    To help your kids better understand the importance of work and money, teach them about financial responsibility. You can do this by motivating them to complete household chores for an allowance. Afterward, have a conversation with them and ask them how they plan to spend their earnings and help them make wise investment choices. By doing this, your kids will learn the value of money and develop important financial management skills.

Setting up a True Youth Account, father and son at a table.

How To Set Up a True Youth Checking Account and Debit Card at Austin Telco

We Make The Process Easy

If you've decided that a youth account at Austin Telco is right for you and your child, visiting one of our local branches is a great place to start. We offer a simple process for opening youth checking accounts and obtaining a debit card for your child. Our branch agents can assist you in initiating the process. You will need to provide documentation including your child's birth certificate, social security number, and a minimum of $25. A credit worthy adult, age 18 or older, must be a joint account holder and provide a government-issued ID and Social Security Number.

At Austin Telco Federal Credit Union, we offer several financial resources to help you teach your kids financial responsibility, including our youth savings accounts, youth-specific share certificates, and more. By prioritizing your kids' financial education now, you can provide them with critical life skills that will benefit them throughout their lives and Austin Telco is here to help every step of the way.