Do Credit Unions Have Accounts for Children?
You want to set a firm foundation for your child, and that includes teaching them financial success. One of the best ways to do that is to help your child start saving their money early. When your child opens a savings account, they learn how to delay financial impulses and save money for the things they want and need the most.
Of course, just like with your own savings account, you'll want to make sure that your child opens an account with the right financial organization. Your child has a few options, but many parents wonder specifically about credit unions. Do credit unions offer accounts for children? Yes, most of them do. Here's what you need to know.
Built Like a Bank
For most intents and purposes, a credit union works almost exactly like a bank. A person can open checking and savings accounts, apply for loans, use a debit card, and take advantage of the services that you'd expect to find at a regular bank. As a result, you shouldn't have a hard time finding a credit union account for your child, especially if you belong to a credit union yourself. Many credit unions allow the family -- including children -- of current members to open their own accounts based on association alone.
The Key Difference
However, the difference between a credit union and a bank comes from ownership. Banks have owners, while credit unions have members. Because credit unions are nonprofit organizations, they're partially owned by each of their members. If your child uses an account with a credit union, they technically have part ownership in that credit union. Also, credit unions tend to offer better rewards and interest rates thanks to their nonprofit status. Since they’re not trying to turn a profit, they can afford to make these offers.
The Advantages for Your Child
Depending on the age of your child, they may or may not understand the difference between a bank and a credit union. That's fine. Your child's early financial literacy does not depend on them knowing the difference just yet. In the meantime, your child can still reap several benefits from using a credit union instead of a big bank.
At the end of the day, a credit union is not a business, which means that their end goal is not to make money off of your kid. That's why many credit unions offer savings accounts for children with low initial deposit requirements. In fact, at a lot of credit unions, a child can open an account with as little as $5 or $10. These accounts also offer fun perks for children in learning how to save money, including rewards and prizes. With this kind of savings account, children can learn as they go, and they'll have fun in the process. This way, they can learn financial literacy in an approachable, non-overwhelming way.
Find Your Child's Credit Union
Ready to help your child start saving toward their goals? Bundlefi can help you find the right credit union for your child. Check out Bundlefi's database of credit unions today. We'd love to help you get your child started on their road to financial success.