Why Teens Saving Money Now Is a Total Power Move
If you’re like many teenagers, you might think you’re too young to even think about saving money. But the fact is, teens who are saving money right now are some of the smartest kids out there.
In this blog, we’ll give tips on creating a savings plan that’s appropriate for your age and show you how to start tucking away those dollars right now using Jeanne D’Arc’s StartStrong accounts so you can build healthy financial habits well into the future.
Why Start Saving Now?
Imagine this scenario: your friend group wants to see the hottest summer concert but the tickets are several hundred dollars a piece. The event is six months away, so you make a plan to save $20 every two weeks in a savings account so that you’ll have enough cash to purchase a ticket.
Your best friend, however, doesn’t do that. So when it comes time to buy tickets, they don’t have the money and miss out on an amazing, memorable night. What a bummer.
The fact is that stashing away even just a little money every month will benefit you not just now, but when you’re older too. Think about it like this: if you learned to play soccer when you were 5 years old, did it help you a lot when you became a high school player? It most likely did.
But, what if you didn’t learn to play soccer until you were 12 years old…do you think you’d be as good of a player at 17?
The same concept applies to saving money. The younger you start, the more practice you’ll have doing it, which will make you better at it, and ultimately will help lay the groundwork for a more successful financial future.
Getting Started
Sometimes the hardest part of taking on any new endeavor is simply getting started. So let’s break this down into simple, achievable steps.
Set Realistic Savings Goals
When you’re learning how to save money it’s important to set realistic goals. Why? So that you can actually achieve them. If you can’t, you’ll probably get frustrated and give up.
When you’re starting, try to put aside the same amount of money on the same day every two weeks. For example, if you get your allowance or paycheck on Fridays, commit to saving $10 on the first and third Fridays of the month. This way you’ll save the money immediately—before you have a chance to spend it—and you’ll get into the habit of saving every two weeks.
Create a Budget
Another important element of any savings plan is a budget. You might be wondering, “What is a budget?” In its most basic form, a budget is a monthly accounting of your finances that keeps track of how much money you have coming into your bank account, your consistent expenses that are deducted (like gas money, for example), and money that you’re saving for the future.
Especially when you’re just learning how to save money, budgets are very useful tools because they can keep you from overspending while keeping you on track to reach your savings goals.
Open a StartStrong Account
Now that you have clear-cut savings goals and a budget in place, it’s time to open a Jeanne D’Arc StartStrong Account! We offer three different types that are designed specifically for teenagers. You could open one or all three—it just depends on what you need.
But first, let’s explain how a savings account is different from a checking account. The big difference is that a savings account allows you to earn interest. Interest is extra money that the credit union deposits into your account every month, adding even more to your savings.
On the other hand, a checking account typically does not earn interest, since its main function is to pay for purchases or monthly bills—not to accumulate savings.
StartStrong Savings Account
With just a $5 deposit, you can open a StartStrong Savings Account that allows you to earn up to 8.00% APY** on the first $500 in your account. In a year, that can add an extra $40 to your account! Then, for any amount over $500, you’ll earn a .05% APY—all for just being diligent about saving your money.
Since this account is designed to encourage you to save money, there are no monthly fees, no required minimum monthly balance, and no fees when you take out (withdraw) money from the account.
StartStrong Checking Account
As the workhorse of your everyday finances, a StartStrong Checking Account can be used separately from a savings account to make debit card purchases, pay bills online, and track your spending.
You need just $5 to open the account, but there is no minimum balance to maintain and no monthly service charges to pay which makes this a great “first-ever checking account” to have.
StartStrong Goals Account
Let’s say you want to save money specifically for those concert tickets but don’t want it mixed in with your general savings account. No problem. At Jeanne D’Arc, we offer StartStrong Goals Accounts designed to help you save for specific goals. Separate from your main savings account, you can open for just $5 and earn 1.00% APY1!
What’s more, there are no monthly service fees from a StartStrong Goals Account, so you can grow your funds faster. To fine-tune your savings, you might want to open more than one! This way you can quickly and easily monitor your progress for each specific savings goal and can reallocate funds accordingly.
Other Advantages of StartStrong Accounts
Besides the benefits listed above, there are other advantages to StartStrong Accounts. For example, you can manage and monitor your money 24/7 with Jeanne D’Arc’s online and mobile banking. You can even assign spending to categories you have identified, like “needs,” “wants,” or “savings.”
With StartStrong Accounts you can also enjoy Member Perks, a free program that offers discounts on movie, sports, and entertainment tickets.
Since the financial health of all our members (regardless of their age!) is a top priority at Jeanne D’Arc, you can take advantage of our financial education and counseling tools. These are great resources to set you up for success as you begin your savings journey!
Establishing Your Financial Independence
If you’re a teen saving money right now, you’re putting yourself on a path of financial independence—which is a great thing! Just think about it: to be able to save money so that you can purchase what you want without having to ask your parents for help is very liberating.
And since teenagers have enough stress about getting good grades and applying to college, when you save your money you’ll reduce the stress of worrying about whether or not you can afford something you want or need.
So what are you waiting for? Click the links below to make the power move of becoming a teen saving money today!
Learn More About StartStrong Savings Accounts
Visit a Branch to Open a StartStrong Account
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**APY=Annual Percentage Yield. 8.00% APY will be paid on the balance in your account up to the first $500.00. A dividend rate of 0.05% will be paid on the remaining balance in your account that exceeds $500.00 with a $500.01 balance earning a 8.00% APY and a $1,000.00 balance earning a 4.193% APY, as examples. Requires a $5.00 minimum balance to open the account. Fees could reduce earnings. All new Jeanne D’Arc Credit Union members will have one of their consumer savings accounts (except retirement statement savings) automatically designated as their primary savings account to receive these special terms. Additional savings accounts established under the same member name, and related tax identification number, are not eligible for these special terms. The M3™ Money Club Savings is available to children Newborn to age 12. Dividend rates are effective as of November 1, 2024. All rates are subject to change, after account opening, without notice.
1 APY = Annual Persentage Yield. All rates are subject to changes, after account opening, without notice. Fees could reduce earnings on the account. Requires a $5.00 minimum balance to open the account and earn APY. Members must havea StartStrong Savings Account or StartStrong Checking Account in order to open a StartStrong Goal Account. Dividend rates are effective as of May 1, 2024.
