First Fed-PiggyBank. Stock photo

The Gift of Savings: Smart money habits 4 kids

Enjoy a bonus welcome gift when you open a kids savings account this holiday season

The holidays are fast approaching! Before buying another toy for your child, consider the gift of savings. If your kids are old enough to ask to buy things, take the opportunity to start teaching them about saving and spending. As a bonus, First Fed is including a $9.90 credit for new First Savings accounts through the end of the year.

A Gift of Saving

Positive financial habits can be established early by setting up bank accounts for kids at appropriate ages and stages in their life. According to a PBS article on money habits, “By age 3, your kids can grasp basic money concepts. By age 7, many of their money habits are already set.”

Paying a child for chores is a way to get them excited about earning and saving money. Deposit their earnings in a “piggy bank” or clear jar so they can see the progress as they add coins. When their piggy bank is full, they can deposit their savings into their bank account.

child with piggy bank

Nearly 39 percent of all children aged 8 to 14 have a personal savings account, according to a 2022 survey by Statista. You can start a savings account when they are even younger, so it has more time to grow. Kids’ savings accounts typically offer interest with no monthly maintenance fee. Kids can review their account balance in regular statements. Encourage your child to create a wish list for “nice-to-haves” like trendy sneakers, video games, or a trip to Great Wolf Lodge. Offer to match their savings towards their top goals. Suggest that your family members contribute towards the child’s savings account instead of more toys, if your house is already stocked for fun. Family members can give each kid up to $16,000 annually tax free!

First Savings accounts were designed by First Fed for kids from birth through age 12. Through Dec. 31, 2022, new First Savings accounts come with a special welcome gift of a $9.90 credit to get a jump start on your kid’s savings. Celebrate with your kids when they reach their financial goals!

A Gift of Independence

Many teenagers and even pre-teens go shopping with friends during lunchtime, before or after school, or on weekends. Some businesses have gone cashless during the pandemic, so teens may require a debit card to buy lunch or snacks.

A teen checking account with debit card is a great way to teach money management skills through budgeting, spending, and saving. These accounts typically offer no monthly fee, online access, and complementary debit card. As a parent or guardian is required for set up when the primary account holder is under 18, the adult can provide guidance while giving teens some financial independence.

A first debit card may feel like freedom, but it also reinforces financial responsibility. A debit card gives teens access to cash when needed and is particularly handy in case of emergencies. Using a debit card instead of cash, while being aware of account balances, is excellent training before opening a credit card as an adult.

First Fed- Credit Card

“A debit card can make life easier for both the teen and their parents,” explains Dawnya Scarano, director of customer experience at First Fed. “Our First Checking account with contactless debit card is designed to give teens secure and easy access to funds while providing parental oversight.”

If your teen has a part-time or summer job, the checking account provides direct deposit options for receiving their wages. They can also connect their account to Apple Cash or Square’s Cash App for easy payments among friends and small businesses.

A study by TD Ameritrade showed that 50 percent of teenagers have held a job outside their home and 40 percent have started following a budget. Whether they are saving for college, retail therapy, or a night out with friends, giving teens access to banking tools is an important step towards financial empowerment.

A Gift for the Future

Beyond savings accounts, consider setting up goal-oriented accounts for your kids that have long-term benefits.

An education savings account (ESA) can be established to save for education expenses. The contributions are not tax deductible, but the distributions are tax-free if used to pay for qualified education expenses.

WA Guaranteed Education Tuition (GET) is a prepaid college tuition plan where you can buy college credits at the current unit price to use in the future when your child is ready for college. The unit price stays pace with current college tuition costs, so buying them sooner is better. The money you withdraw is tax-free when used towards qualified higher education expenses.

Wages from their first jobs can be placed into a Roth IRA retirement account. Money contributed is taxed in the current year, but earnings grow tax-free if they wait until they are 59 ½ years old to withdraw it. Decades of growth can add up to significant earnings!

Smart Habits for a Lifetime

When your child becomes an adult, there are many financial firsts to celebrate. A first credit card, first 401K, first auto loan, and first mortgage, to name a few. Developing smart money habits as children will give them a better foundation to successfully navigate these responsibilities. Ready to get started? Visit your neighborhood branch or https://www.ourfirstfed.com/personal/savings/first-savings.

First Fed is a member FDIC and equal housing lender.

The news and editorial staff of Sound Publishing, Inc. had no role in the preparation of this post. The views and opinions expressed in this sponsored post are those of the advertiser and do not reflect those of Sound Publishing, Inc.

Sound Publishing, Inc. does not accept liability for any loss or damages caused by the use of any products, nor do we endorse any products posted in our Marketplace.

More in Local Marketplace

2024 winning photo by Laura Robertson.
Now accepting entries: First Fed’s Proudly PNW photo contest

First Fed is inviting photographers of all ages and experience levels to… Continue reading

Preplanning with Sequim Valley Funeral Chapel helps ease Medicaid stress, protect assets and bring peace of mind to families facing difficult decisions.
Protecting what matters: Understanding Medicaid and the benefits of prepaid funeral planning

How planning ahead can help families ease emotional and financial burdens

“In Washington State, people who work here can’t afford to live here,” says Ellen Michael Caldwell, Director of Communications for Habitat for Humanity East Jefferson County. Photo courtesy of Habitat for Humanity East Jefferson County.
Building hope, one home at a time

As housing needs rise, Habitat for Humanity of East Jefferson County grows

Registration for Summer Camp at YMCA’s new Early Learning Center at the 7th Haven Apartment Complex is now open! Located just a few blocks from Jefferson Healthcare at 1351 7th Street, Suite Y. Photos courtesy of the the Olympic Peninsula YMCA.
The YMCA kicks off a new Early Learning Center with preschool summer camps

Affordable child care and preschool summer fun now available in East Jefferson County

But what really sets a HELOC apart? It’s not just about borrowing – it’s about borrowing smarter. Courtesy First Fed. Courtesy First Fed
What makes a HELOC unique – and how to access your funds

When homeowners need flexible financing, a Home Equity Line of Credit (HELOC)… Continue reading

Field Hall has an exciting summer season planned, including two standout performances: international cellist and one-man orchestra Ian Maksin (Aug. 21), and a stripped-down funk and soul set from Lucky and the Locals (Aug. 22). Photo courtesy of Field Hall.
Field Hall announces 2025 Summer season focused on fun, family and free events

The Port Angeles event center highlights international and local talent for summer

The City of Port Angeles received the 2025 Implementation Award from the Washington Chapter of the American Planning Association and Planning Association of Washington, recognizing its innovative and impactful housing initiatives. Courtesy City of Port Angeles
Port Angeles pursues Housing for All

City earns prestigious state-wide planning award for housing initiatives

Sequim Valley Chapel supports families beyond the funeral arrangements with a range of grief support services
What happens after you pass away? Sequim Valley Funeral Chapel explains the funeral process

Professionals help grieving families navigate the first steps after loss – offering clarity, compassion and 24/7 support

As the company mascot, Molly the French bulldog has helped Moore Construction stand out in a crowded industry. Courtesy Moore Construction
Moore than homes: Local builder thrives with First Fed

When Matt Moore launched Moore Construction in 2021, it started with two… Continue reading

YMCA summer camps across the Olympic Peninsula offer kids fun, friendship and growth through themed activities focused on community and values.
Summer starts here! YMCA camps bring fun, growth and community to the Olympic Peninsula

Camps are designed around the Y’s core values – caring, honesty, respect and responsibility

Honoring the lives of loved ones with compassion, Sequim Valley Funeral Chapel guides families through memorial planning and pre-arrangements.
Planning ahead: How prearranged funerals ease emotional and financial burdens for loved ones

Sequim funeral home encourages early planning to ensure wishes are met

During First Fed’s 2024 Community Spirit Day, more than 170 employees volunteered across 21 nonprofits throughout western Washington, contributing 700+ volunteer hours in a single day.
Banking on Community: First Fed Foundation celebrates 10 years

If you live on the Olympic Peninsula or anywhere in western Washington,… Continue reading