Have you ever filled up a piggy bank and waited to cash it in for something you dreamed of buying? Today, there are other ways to start saving not only for what you want right now, but for things you will need in the future. It is always a good idea to save loose change, money from the Tooth Fairy, and birthday money in a piggy bank or a youth savings account! Whether you are 5 or 55 years old, saving will always be an invaluable part of life.
Back when your parents were your age, they used to save their money in a piggy bank. Now, with the advancement of technology, we have debit cards and online and mobile banking. Many financial institutions offer youth accounts so you can start saving easily. Your parents can even make automated transfers to your very own account without having to think about it. This helps make it easier to not spend your hard-earned money.
While you may not be thinking about college just yet, that time will come faster than you think. Investing a few dollars into a savings account can go a long way by the time that you reach 18 years old. A tip for having a good chunk of money by the time that you reach college is to save 20% of your birthday money and other income that you may get in a piggy bank. When you turn 16 or 17 years old and get a part-time job, think about opening a savings account and depositing 20% of your paychecks into it. Once you get to college, you will have a good amount saved up for your tuition, books or spending!
Coverdell Education Savings Accounts (ESA) or 529 accounts, which are basically savings accounts for college, allow you to invest in your future. Speak with your parents about looking into your options now. Saving your money in a youth account or piggy bank will benefit you in the end and will help you build a healthy habit that will go far beyond your youth.
Federally insured by NCUA, GECU is available to help you save more. Certain tax implications apply to ESA and 529 accounts, consult your tax adviser for details. Open a GECU Youth Savings account today. Visit gecu.com today or call 778.9221, toll-free at 1.800.772.4328, to see how GECU can help you save and find out how easy it is to become a member.