Tips For Teens For Financial Success This Summer
As the school year ends and the long stretch of summer vacation begins, many teens will have the opportunity to build up their summer savings by working and making money of their own. At Austin Telco Federal Credit Union, there are many options for teens when it comes to managing and building their finances. By utilizing our True Youth Savings or True Youth Share Certificate, our younger members can steadily build up savings while still enjoying all the benefits of summer.
For parents looking for ways to help their teen best manage their summer savings, we encourage you to work with your children to help them develop powerful and positive money habits. Taking the first step can be intimidating, especially when it comes to establishing financial stability. Luckily our team at Austin Telco has the tools and tips needed to get teens and young adults started on their path to success - starting with our True Youth Savings accounts and our True Youth Share Certificate! We are here to be your partner in that effort to make it easy for you and your teen to work together toward a shared goal of turning their summer savings into a foundation for future wealth and education.
How A True Youth Savings Account Works
Tools To Use To Bulk Up Summer Savings
Young members can build a true financial future by utilizing some of the youth summer savings tools available at Austin Telco. One of the easiest ways to get started is through a structured account like a True Youth Savings Account. These accounts are specifically designed to teach children and teenagers how to effectively budget, earn and save throughout the summer and beyond. By funneling a portion of summer funds into this account, you'll be able to steadily build up savings that are not only secure but also grow with interest. When you open a True Youth Account with Austin Telco for your kids, you'll get access to member benefits including financial education resources, online banking, and money management services. With all these features at your fingertips, you'll be well on your way to financial success. In addition, we also offer access to mobile banking services for all of your accounts with us through our mobile banking app.
To take your savings skills one step further, you can add on a True Youth Share Certificate to the True Youth Savings Account to bolster your savings. This can be opened with the funds already in your savings account and function a bit differently when it comes to helping build up your youth summer savings.
Introducing Austin Telco’s NEW True Youth Share Certificates
Start Investing With Share Certificates
Despite the name, a share certificate is not a piece of paper. It's a unique type of savings account, with the distinctive quality of being able to earn higher dividends than a standard savings account. This means that when you allow your money to sit, it will grow at an even faster rate than the average savings account but with a few additional stipulations. Closing the share certificate or withdrawing from it before it reaches maturity can accrue penalties. Another stipulation to understand before opening a share certificate account is that they usually require a minimum balance to open and maintain to earn dividends, and traditionally have a set term where you are unable to make additional deposits. Our standard share certificates are available with a wide range of terms to fit your needs.
Austin Telco’s new True Youth Share Certificates function a bit differently give kids and teenagers the flexibility to learn different ways to save other than just a savings account. Our youth share certificates require a $25 opening deposit and must be maintained for the share certificate to remain open. The maximum funds you can possess in the share certificate is $5,000. A big difference between our regular share certificate and the youth share certificate is that additional deposits are allowed at any time in $25 increments. This will be especially useful when it comes to youth summer savings because you kids will be able to contribute portions of their summer earnings to their youth share certificate. Dividends are paid out monthly like an allowance and will be distributed into the youth savings. Another difference that sets our youth share certificates apart from others is that you are locked in on a set rate. There are some youth share certificates out there that turn into a variable rate after you reach a certain amount balance.
While this sounds like a lot of rules and regulations, in practice, share certificates are actually quite simple - deposit funds, leave it, earn dividends, and when the term is up, you can take back the initial investment or let it auto-renew and keep earning more. Ultimately, a share certificate offers an opportunity to grow your money safely.
Learning About Finances Early Will Help You In The Long Run
Youth Summer Savings Skills Can Carry Into Adulthood
Financial freedom allows you to chase your other goals with less stress and pressure, so it's important to learn about finances early on. When you have a good grasp of money management skills such as defining objectives, creating a budget, saving money, and investing, your kids will have the skills to make informed financial decisions that bring them closer to achieving both long and short-term goals. They’ll have the knowledge to take ownership of their financial future and steer the course ahead.
Starting at a young age allows kids and teens to embrace the power of interest and dividends. By putting away even a small amount of money each month in an account like a True Youth Share Certificate, they can begin to learn the value of letting money sit and grow over time under the right conditions. If you're feeling overwhelmed when it comes to managing your finances, investing, or figuring out how to teach youth financial literacy to your kids and teen, know that you’re not on your own. With our team at Austin Telco by your side, you won’t need to figure out the best youth summer savings tools by yourself.
Start Building Your Youth Summer Savings!
Austin Telco Can Help You Get Started
We hope this information has given you some insight into how you or your teen can make your money work for you this summer! Don’t hesitate to connect with the Austin Telco team to learn more about True Youth Share Certificates, youth summer savings, or anything related to finance. Our experts can help you find the right financial tools to help you achieve your goals. With the right tools, a little knowledge, and the help of Austin Telco Federal Credit Union, you'll be on your way to building a true financial future.