The student loan debt crisis in the U.S. continues to make headlines as the $1.2 trillion amount continues to grow each second. As a parent, you may be one of the 40 million Americans still struggling to pay off that student loan, but there’s no reason your child should suffer the same fate in the future. Valley Federal Credit Union knows how important it is to save. Consider opening a VFCU youth account and work toward being debt free.
College Isn’t Far Away
A study by the Center for Social Development at Washington University in St. Louis found that students with as little as $1 in a savings account were seven times more likely to go to college and graduate. A different study by the University of Kansas found that children who start saving early accumulate an average of $2,000 in assets and are four times more likely to begin investing in stocks as adults.
Your little one may be starting their first day of kindergarten, but now that you’ve opened that savings account, you might be seeing medical school in their future. It happens to many families once they begin to save. Having a savings account in place makes college an achievable goal for low- to-middle income families, according to research by William Elliott III, Associate Professor of Social Welfare at the University of Kansas in Lawrence.
The Value of Money
That piggy bank you got for your child’s birthday is ready to break, and your little one wants a new bike. This is a prime opportunity to open a youth account and start teaching your child the value of a dollar. Once they have an account set up, they’ll realize how important it is to save for the things they want. As they learn about withdrawals, deposits and budgeting, they will begin enhancing their addition and subtraction skills. Practicing good money habits today will lay the foundation for their financial future.
Start a Youth Account Today
Whether you’re saving for your child’s scholastic future or creating an emergency fund, it’s important to start early. This is why Valley Federal Credit Union offers youth accounts that are offered to those under the age of 17 and can be opened with just $5. All parents need is a valid Texas I.D. (when applicable) along with a social security card. Parents or an adult guardian must also meet the same requirements until the child is 18 years of age. For more information about our services, visit our location in Brownsville.