This year, try giving your kids and grandkids something they’ll appreciate decades from now. Here are three ways creating a foundation for financial wellness could be the best gift they get this year.
Smart Savings and Education
A study by the Financial Industry Regulatory Authority found that students who took personal financial classes at school had better money management skills, higher credit scores, and less high-interest debt as adults. While not every school system teaches fundamental money skills, we do. Our financial wellness tools are designed to help individuals reach their financial goals. For a more hands-on experience, you can also set kids on the right path with their own savings account. With a savings account, kids learn firsthand how interest rates work and start making the connection in understanding the difference between wants and needs. When they’re older, a checking account can teach them even more about budgeting and smart money management.
Loans for Real Life
Whether it’s their first car, a credit card, or a dream home, loans are an important financial tool. Getting your teen a credit card can help them learn healthy money habits. Don’t underestimate the value of understanding how to manage credit card debt early. Even if they aren’t old enough to have a credit card, simply introducing a young person to the concepts behind a loan, or showing them the details of your auto loan, can make financing far less intimidating. Plus, when they understand APR (annual percentage rate), terms, and monthly payments, they’re far less likely to fall for flashy lending gimmicks.
Long-Term Planning
According to the College Board, the sticker price for college keeps rising. More than half of students graduate with debt that takes years to pay off. Give your child or grandchild a strong start for the future by providing a financial foundation that could help cover the costs of their education. With our Coverdell Education Savings Accounts, the sooner you start the more time the money has to grow before they turn 18. Plus, the funds can be used tax-free for many education expenses at most two- and four-year colleges as well as technical, vocational, and graduate schools.
The Perfect Gift is at Transportation FCU
Our member service representatives are here to help the next generation navigate a path to financial success. Stop by or call to talk about how to gift financial wellness to someone in your life.