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Parents, while you're encouraging your children to get good grades and work hard in school, there's one more thing you need to teach them if you want to set them up for success: how to handle money.
Most graduating seniors know how to read and write — but few are financially literate. In a "Teens and Money" survey conducted by the Charles Schwab Foundation in 2011, just 38% of teens knew how to establish good credit. Only 35% knew how to balance a checkbook and manage a credit card. A mere 17% knew what a 401(k) plan was. But 75% of teens said that learning about money management — including saving, budgeting and investing — is one of their top priorities.
Well, here's an easy way to teach them — and help them earn a fast $100 in the process.
Introducing the Utah First Savings for Success program
Utah First Credit Union is on a mission to help teenagers and high school students make good financial decisions while they're young. Although it may be years before the big bucks start rolling into their bank accounts, it's important for teens to establish healthy habits early. That's one of the benefits of Utah First's "Savings for Success" program, which incentivizes teens to begin saving for their futures today.
Here's how it works: All your high schooler has to do is open an account with Utah First and they'll immediately receive a free $100 deposit. That's it. No frills, no fuss, no frustration — just an automatic $100 and a step toward financial responsibility.
The importance of saving early
No doubt you've heard the famous adage, "A penny saved is a penny earned." Well, that penny could lead to tens of thousands of dollars in savings over the years if your teen starts early and saves consistently.
The Consumer Financial Protection Bureau illustrates this by pointing out exactly how much money your child could save by simply setting aside $100 every year starting at age 14. Assuming their account earns 5% interest every year, by the time they're 65 they will have about $23,000 in savings. However, if they wait to start saving until they're 35, they'll have about $7,000.
With the Utah First "Savings for Success" program, that first $100 is already in the bank. And as long as they get in the habit of setting aside a portion of their earnings, they'll have a significant amount in savings when they're older. (Their future selves will thank you for teaching them these financial skills while they were young.)
Start your child on a path to savings
Setting up an account with Utah First is fast and painless for your teen. All they need to do is fill out a form online and they'll be saving money in just a few clicks. Just remember that they'll need your permission to open the account.
To claim your free $100 and start the road toward financial success, have your teen visit the Utah First Credit Union website today.
Earn money when you invite your friends to join
If your teen already has an account set up with Utah First, don't worry. They can still get $100 from the credit union by bringing in two friends to open new accounts. Earning money has never been so easy!