Kasey Bridges, manager at the new Everwise Credit Union Olio Road location scheduled to open this summer, explains how to teach kids financial independence.
Everwise Credit Union is Indiana’s largest credit union with more than $5 billion in assets, 50-plus branches throughout Indiana and southwest Michigan and nearly 300,000 members. Everwise offers traditional financial services including checking, savings, mortgages, credit cards and wealth management services.
WHAT AGE SHOULD KIDS BE INTRODUCED TO BANKING?
"Kids who learn about money early are more likely to make smart financial choices as adults. Open conversations about spending, saving and financial decision-making remove mystery and anxiety. The goal is comfort and understanding, not perfection."
SHOULD PARENTS OPEN KIDS’ CHECKING AND SAVINGS ACCOUNTS?
"Opening both is a great way to drive home financial responsibility. With a checking account, start by teaching kids to monitor balances and transactions and to use a debit card thoughtfully. Teach smart saving and spending habits, like splitting money evenly between savings and spending. It’s important to teach short-term and long-term financial goals. Encourage kids to deposit money from chores, special milestones, birthdays, graduations and summer jobs. Reinforce the habit of checking balances and tracking progress toward goals. Parents should oversee accounts until their child turns 18."
DOCUMENTS NEEDED TO ESTABLISH KIDS’ BANKING ACCOUNTS:
"Parents must be listed as joint owners and bring their child to a local branch. Both parents and kids will need to show proof of identity and address, Social Security information and pay the required deposit."
HOW SHOULD KIDS BE INVOLVED IN ACCOUNT OPENING PROCESS?
"Kids should be active participants to feel a sense of ownership. Let them ask the banker questions about how their accounts and debit cards work."
KEY FEATURES TO CONSIDER WHEN SELECTING ACCOUNTS:
"Look for accounts that offer both education and security. Key features include parental controls with spending limits, real-time purchase alerts, locking functions and no monthly maintenance fees. A robust mobile app lets kids track spending. Look for a wide ATM network to prevent out-of-network fees."
FINANCIAL SKILLS TEENS SHOULD LEARN BEFORE COLLEGE:
"With younger kids, help them understand basics, like differences between needs and wants. Elementary-age kids can begin learning about saving for short-term goals. Middle schoolers can start managing small amounts of money. Teenagers can begin learning about budgeting, earning income and how credit works. When discussing family projects, show them established budgets."
HOW CAN FAMILIES AVOID MISTAKES DURING THIS PROCESS?
"Parents need to understand fees such as ATM charges, monthly maintenance fees or overdraft fees, which can add up quickly. Another common mistake is keeping savings in a checking account that doesn’t offer interest or dividends. Finally, choose an account that aligns with a child’s spending, saving and lifestyle needs. If they have a low balance, avoid accounts with high minimum requirements to prevent extra fees and use helpful tools like mobile banking and automatic bill pay."
HOW DOES EVERWISE CREDIT UNION TEACH KIDS FINANCIAL LITERACY?
"Everwise Credit Union offers secure, easy-to-use banking solutions designed to teach kids to manage money confidently. 'Simply Checking' accounts are ideal for teens and young adults because they have no monthly fee and can earn cash-back. 'Greenlight Family Banking' accounts help youths of all ages learn money basics on their own terms. Parents who have an Everwise account may be eligible to connect to Greenlight features for free."
Disclaimer: The information provided is for educational purposes only and doesn’t constitute financial, tax, legal or accounting advice. It's to be considered as general information, not recommendations. Please consult with an attorney, financial or tax professional for guidance. Since its founding in 1931, Everwise has focused on making positive impacts on its members and the community. Everwise Credit Union is federally insured by NCUA and is an equal opportunity lender.
"Once children learn the financial basics, introduce next-level concepts, such as long-term investments, compound interest and how credit can help build a reputation to rent an apartment or buy a car."