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Give Teens a Financial Edge

  • What financial products should teens start looking into first?
  • What can parents do to start preparing their teens financially for the real world?
  • What can teens do on their own to prepare financially for the real world?
  • What does Avadian Credit Union offer teens in the way of financial products and education?edge_logo_right

Conversation Points:
  • The first financial product a teenager should apply for is a savings account…if they don’t already have one. The key to starting off right is teaching teens to follow one simple rule: saving money should always come before spending money. Nowadays, most parents are opening a savings account for their children as soon as they are born. Once a savings account is established either by the teen or the parents, then the most common products to follow for this age group are a checking account, a credit card and possibly an auto loan.

  • There are several things parents can do to prepare their teen financially:
    • Set them up with a savings account as early as possible.
    • Talk to them about money on a regular basis. Whether it’s watching you pay bills or shopping at the mall, there are many opportunities to discuss the value of money and the best way to save and spend it.
    • Help them earn money and encourage them to save it. Establishing an allowance is an excellent way to start. You can also give incentives for them if they choose to save the money they earned. For example, you could offer giving them a match for part of their savings, similar to a company’s 401k program. And once they do start earning money, help them create a budget.
    • Don’t give in all the time. They need to know they can’t always rely on you to pay for them. If they want to buy the newest trend, let them. If they come up short, don’t contribute the remaining amount. They will appreciate it more in the long run if they can pay for it completely on their own. It will also help them determine how much they really think they “need” or want that new trend.
    • Walk the talk. If you teach them it's important to save a portion of their allowance, make sure you're doing the same thing with your money. They learn by example.

  • There are several things teens can do prepare financially as well:
    • Look for ways to save and earn money on their own.
    • Initiate discussion with their parents about money matters. They can offer to help pay the bills one month.
    • Set up a budget when they get their first job.
    • Talk to their financial institution about how they can save and earn more with their money. They may find opening a CD is better than stashing their cash in a low interest savings account.
    • Ask questions and take financial classes.

  • Avadian offers a great teen savings program. Our Edge account is available for teens between the ages of 13 and 19. All they need is $5 and a parent or legal guardian. For our Edge members, we have developed a special Edge website and Edge Facebook page. Both our site and Facebook page feature money tips, videos, random fun stuff, contests and giveaways. Edge continues their financial education by speaking to money-management tips and preparing them for a checking account and credit card.
For more on Avadian Credit Union’s Edge account and other youth programs, visit or call 1(888) 282-3426. 

The credit union is federally insured by the NCUA. Additional insurance of up to $250,000 on your savings accounts is provided by Excess Share Insurance Corporation, a licensed insurance company.
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