So, I am excited to report, I’ve been doing some homework preparing for my first official GTE – U22 blog! My topic of choice? How young is too young to try and start your children on the path towards making smart decisions with money? According to an article I read at KidsHealth, a good time to start giving your kids an allowance is at 10 years old. We were a bit ahead of the curve and gave our two kiddos an allowance starting at age 8. They still earn an allowance for doing chores but now they are teenagers and have outgrown many things including their pink piggy banks! I want to start teaching my kids the value of saving versus the joy of spending and to make sure they are on the road to financial responsibility well before adulthood.
I recently read an article in the Wall Street Journal that stated:
“Roughly one-third of graduating high-school seniors feel unsure or unprepared to manage their personal finances, according to a survey of 500 students conducted by Capital One Financial Corp. And only 27% say their parents are a primary resource for financial guidance.”
Wow! So, coinciding with my commitment of financial education, I decided that it was time to get more involved. After all, if I don’t teach my children how to be responsible with money, who will?
And, here’s my little pitch, which I promise I won’t do too often, but it’s a good one! GTE Federal Union has a product that is specifically tailored for young adults, so it’s not the stiff bank account that I use, but something they may enjoy and appreciate – the GTE U22 account – visit www.u224u.com for more information. This particular program has a lot of features that I like, such as the ability for me to set daily spending limits for my kids, and alerts when the balances get low. They get their own debit card and earn points towards cool stuff. This type of tailored credit union account is a good way for my kids to get a taste of financial responsibility without having to leap into the commitment (and possible fees!) of a regular checking account.
Also, if your kids are like mine, they will make mistakes from time to time. One of the benefits of the U22 account is that once a month, should they overdraw from their account, the penalties are forgiven. I find this to be especially important given that Americans paid over 16 BILLION dollars in overdraft fees in 2006.
I’m excited about this big first step that we have taken by opening a U22 account, but I realize there are many more lessons to be learned. I’ll be sure to chronicle them along the way so that other parents can learn from my failures and successes. With GTE Federal Credit Union and the U22 account, together we can raise a more fiscally responsible generation of young adults! Go us!
