Hello and welcome back to the Tonawanda Valley Federal Credit Union blog! Here at TVFCU, we like to ensure that our members are as informed as they can be, so we regularly like to share information for that goal. Today, we wanted to take some time to talk about family banking and why you should consider getting your child set up.
Here at TVFCU, we aren’t just a banking service. We’re a proud member of the community, offering our members the best rates around for all sorts of loans and interest payments. Our members are our owners and our personalized service is something a big-box national bank can’t give you.
Family Banking with TVFCU
An account with TVFCU is a great way to start your child on the road to financial education and literacy. Our ability to help your child get started on their financial journey gives students the opportunity to operate an in-school branch while being given hands-on experience with vital life skills like money management. Our objective is to build a more financially educated population, and it’s never too late to get your start.
Banking for your whole family is set up with minimal fees and balance requirements, overdraft protection, and account alerts to ensure that we’re getting your child started on the right foot!
Overdraft protection is a feature that we offer to prevent your account from going into the negatives. Let’s say you’re at a store and want to buy a sweatshirt for $35, but you only have $30 in your account. Without overdraft protection, your card declines. With overdraft protection, we cover the remainder so that your balance doesn’t go negative and you can purchase the item. Please do keep in mind that this service comes with a fee and isn’t simply “free money”.
Teach Your Teen Financial Literacy with Family Banking
That brings us back to financial education and literacy. Teaching your teen this skill will benefit them and their future immensely. When you’re talking with your child about opening an account with TVFCU, you should make sure to cover responsible budgeting, saving, and spending to avoid debt.
Budgeting: Track your income and expenses for a month to see where the money you spend is going, and how much you have left over. Then, create a budget that keeps in mind things like transportation, food and other essentials.
Setting Financial Goals: Identify what your teen wants to save for, like a car, schooling, new computer, etc, and make sure it’s an attainable goal. For example, wanting to save for a brand-new, off-the-lot sportscar is probably out of their reach at this time.
Save: Saving is an essential part of learning financial responsibility. Make saving a priority by reminding your teen to set aside money for their goals. One thing to consider is automatic transfers from checking to savings to help with this!
Spending: Keep your teen aware of their spending habits! You don’t want to see all of your kids money blown on one of a small handful of purchases. A general rule of thumb is you can’t afford it unless you can buy it three times over, and don’t forget to look for savings on the item.
If you have any questions, please feel free to reach out! You can follow along with our blog where we’ll share posts like this one here and more going forward. You can give us a call at 585-344-5544 or 800-887-5544, or by reaching out via our contact form.