How to Open a Youth Account and Teach Money Skills Early

As a parent, you want to equip your teen with the skills they need to succeed in life, and one of the most crucial is financial responsibility. But it can be difficult to know where to begin. How do you teach the value of a dollar in an increasingly digital world?

A dedicated youth account can be the perfect solution. Think of it as a financial training ground: a safe, controlled environment where your teen can learn practical money skills with your guidance. This isn't just about giving them a place to keep their money. It's about giving them the tools and experience to build a solid foundation for their financial future.

This guide will walk through the benefits of giving your teen banking access, how Member One’s accounts work, and how you can use them to teach budgeting, saving, and responsible spending.

The Benefits of a Hands-On Approach to Financial Learning

While giving your teen cash for their expenses is one approach, a dedicated bank account offers a more effective and educational experience. It transforms money from an abstract concept into a tangible tool they can learn to manage themselves.

• Learning by Doing. A bank account allows a teen to see firsthand how money moves. They can track their balance, see how purchases affect their total, and understand the flow of funds from a part-time job or allowance. This hands-on experience is invaluable.

• Building Foundational Habits. It introduces core money skills for teens in a practical way. They learn how to track their balance before making a purchase, the importance of saving for a goal, and how quickly small, everyday purchases can add up.

• Introduces Basic Budgeting. When a teen's spending is visible in a transaction history, it provides the perfect opportunity to introduce the concept of budgeting. They can see exactly where their money goes, which is the first step in learning how to create and manage a simple budget.

• A Safe Place to Make Small Mistakes. It's better for a teen to learn from overspending a $20 weekly budget now than to make a major financial mistake later in life. A youth account with parental oversight provides a safety net, allowing them to learn from small missteps without facing serious consequences.

Member One Youth Accounts: The Tools for the Job

To create an effective learning experience, you need the right tools. Member One offers a combination of accounts designed to grow with your teen.

The journey begins with the Generation One Share Account, a savings account designed specifically for teens ages 13-18. This account helps introduce the concept of saving and earning dividends, with tiered rates that reward larger balances. For the account to be opened, a parent or legal guardian must be a joint owner, which provides the necessary oversight to guide your teen.

To provide your teen with a debit card for spending, this savings account can be paired with a Member One checking account, such as One Choice Checking, which has no monthly maintenance fee. This combination creates a complete youth checking account experience, giving your teen the ability to save, spend responsibly, and manage their money through our digital banking tools.

A Parent's Guide to Opening and Using the Account

Setting up the account is just the first step. The real value comes from using it as an ongoing teaching tool.

1. Have the "Money Talk." Before you open the account, sit down with your teen to set clear expectations. Discuss what the money is for (e.g., lunches, gas, entertainment), establish any spending limits, and clarify what contributions they are expected to make from their allowance or a part-time job.

2. Set Up the Accounts. Opening the Generation One and checking accounts is a simple process you can do with your teen at any Member One branch. This act of setting it up together reinforces the idea that this is a shared responsibility. As a parent or guardian, you will be a joint owner on the account.

3. Introduce the Digital Tools. Once the account is open, help your teen download the Member One mobile app. This is a great opportunity for hands-on learning. Show them how to check their balance and set up alerts for transactions or low balances. This feature gives them independence while providing you with peace of mind.

Key Lessons to Teach with a Youth Account

An account is a powerful tool for turning abstract financial concepts into practical lessons.

• Lesson 1: The Power of Saving. Use the Generation One Share Account to help your teen set and track savings goals. Whether they’re saving for a new computer, a car, or concert tickets, the account provides a clear visual of their progress. You can also use it to explain how dividends work, showing them how their money can earn more money over time.

• Lesson 2: Conscious Spending and Budgeting. The debit card's transaction history is a perfect, non-judgmental teaching tool. Set aside time to review the statement with your teen. Seeing a list of their purchases helps them understand where their money is actually going and is the first step toward creating a simple budget.

• Lesson 3: The Flow of a Paycheck. If your teen has a part-time job, setting up direct deposit is a major financial milestone. It teaches them how money flows into and out of an account electronically and gets them comfortable with a process they will use for the rest of their working lives.

Your Partner in Building a Financial Future

A Member One youth account is more than just a place for a teen to keep their money. It’s also a hands-on educational tool designed to build confidence. This partnership between you, your teen, and your credit union provides a structured way to develop a lifetime of good financial habits.

By starting early, you give your teen the invaluable gift of financial literacy. To begin the conversation, talk with your teen about their financial goals and visit a branch to learn more about opening an account together.