Dream It, Do It: StartStrong Makes Teen Savings Goals a Reality
Why just dream about buying something special and instead actually do it? All you need is the right type of account and a focused savings plan to turn your goals into a reality.
In this blog, we’ll explain how Jeanne D’Arc Credit Union can set you up for success by helping you establish priorities, create realistic goals, and stay on track to reach your teen savings goals.
The Basics: What Is a Savings Account?
The first question you might have is: What is a savings account, exactly? Basically, it’s an account at a credit union or bank for holding (or saving) your money. One big benefit of savings accounts is that they allow you to earn extra money through interest that the credit union or bank adds to your account.
They refer to their savings interest rate as an annual percentage yield (APY). Through the addition of this interest, your account will grow more over the course of a year, “yielding” more money in it.
But keep in mind that because they are designed to help you save money, savings accounts are not meant to be used for everyday expenses or purchases because—just think about it—that would consistently reduce the savings and defeat the purpose of the account.
Not All Savings Accounts Are the Same
If you’re a teen who has a Jeanne D’Arc StartStrong Savings Account, you’re already earning 8.00% APY* on the first $500 in your account—which adds an extra $40 to your account during the course of a year! Plus, you’re earning another .05% APY on the balance above $500.
Now let’s say you’ve got your eye on a fantastic prom outfit or the latest gaming console, but you have to pay for those purchases yourself. How can you do it? One way is to open a separate savings account for the purpose of saving specifically to buy that special dress or piece of gaming equipment. So, let’s take a look at how you can achieve that.
Jump Start Your Savings With a StartStrong Goal Account
At Jeanne D’Arc, we offer StartStrong Goal Accounts for teenagers looking to streamline their savings for specific goals. With just a $5 deposit, you can open a StartStrong Goal Account and earn 1.00% APY.**
There are no monthly service fees or penalties for withdrawing money early, but to make the most of your savings, we recommend keeping your funds in the account until your selected disbursement month. That way, your money has time to grow and will be ready when needed.
Separate Accounts for Specific Goals
To increase focused saving, you might want to set up more than one StartStrong Goal Account. This way, you can quickly and easily see how close (or far) you are to reaching your savings goals and can adjust accordingly.
For example, you could set up a StartStrong Goal Account for prom expenses, one for a gaming console, and a third for that summer camping trip you’re hoping to take with your friends. When reviewing your balances, you might see that you’re only $20 short of being able to pay for the dress, but you’re $80 away from affording the camping trip.
You could then decide to deposit your next $20 into the prom account, withdraw the funds, and buy the outfit. Or, you might decide you want to add funds to the camping trip instead since you’re pretty far off from your target number. Either way, you’re making an informed decision based on a clear-cut, focused savings plan.
Create a Timeline
When setting savings goals, it’s best to be realistic about what you can put aside every month and create a timeline to keep on track. If you have a part-time job, establish a certain dollar amount from each paycheck that you will deposit into your StartStrong Goal Accounts. Or, if you receive birthday cash every year, commit to depositing a portion of it into your savings.
Additionally, you’ll choose a disbursement month when opening your StartStrong Goal Account. This is the month your account will automatically close, and your savings will be transferred to your StartStrong Savings or Checking Account—ready to be used for your purchase. You can select from February, May, August, or November, so pick the month that lines up best with your savings goal. Interest is still credited monthly, but the disbursement month gives you a clear target to work toward.
For example, let’s consider the prom account. You might want to choose February as the distribution month since proms are in the spring and you will likely want the extra money before then to make your purchases. Or for the summer trip account, May could be a good month since you’ll probably want to buy camping supplies or gear before summer begins.
How to Open a StartStrong Goal Account
So now that you understand the benefits of focused saving, you need to know how to open a StartStrong Goal Account!
First, you must already have a Jeanne D’Arc StartStrong Savings or StartStrong Checking Account in place to be eligible to open a StartStrong Goal Account. Click below to find a branch you can stop by to open an account.
Visit a branch to Open a StartStrong Account
Once you have a savings or checking account set up, you can apply for StartStrong Goal Accounts and start saving up for those special purchases!
The Jeanne D’Arc Difference
Besides great interest rates and no fees, StartStrong Goal Accounts also come with additional benefits like Online and Mobile Banking for 24/7 access and financial education resources so you can learn about financial topics and concepts from the ease of your laptop.
To find out more details about our StartStrong Goal Accounts and start reaching your teen savings goals, just click below!
Learn More About StartStrong Goal Accounts
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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.
**APY=Annual Percentage 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 have StartStrong Savings Account or StartStrong Checking Account in order to open a StartStrong Goal Account. Dividend rates are effective as of May 1, 2024.
