Some holiday traditions never change: decorating a Christmas tree, sipping delicious hot cocoa and your child receiving cash or a check from a family member or friend.

Then the question arises: Where should you put the money?

Here are four tips on how to keep your child’s money safe and help set the stage for a financially confident future.

Open a Savings Account

Not only are youth savings accounts a great way to protect your child’s money, but they also provide teaching opportunities for you to explain banking, money management, and interest.

Some youth savings accounts even come with extra perks. With the Al Pacu Club Savings Account, your child receives a $10 deposit into their account on milestone birthdays: at ages five, ten, and fifteen. They can also earn up to $10 a year for each “A” or full letter grade improvement on a report card.

Our Al Pacu Club Savings Account is more than just a place to store holiday cash gifts from relatives and allowance money. It’s an initial step toward building financial confidence. This account helps young savers develop healthy money habits in a secure and supportive environment.

Consider a Share Certificate

While share certificates typically offer dividends in exchange for keeping the money tucked away for a set period. Unlike a youth savings account, which is usually in a child’s name, a share certificate is held in your name. 

Opening a share certificate provides an opportunity to discuss with your child how compound rates work and why saving now can pay off later.

Planning ahead for significant milestones, such as buying a first car or paying for college tuition? A share certificate is a good option to consider.

Teach Good Financial Habits (Starting with This Year’s Gift Money)

As mentioned earlier, it’s never too early to start talking with your child about the importance of making wise financial choices and the value of saving. And what better time than the holidays to kick off that conversation?

Create a simple savings plan with a fun, achievable goal, such as a new toy, gadget or reaching a specific dollar amount. Then help your child break that goal into small monthly saving steps.

The thought of your child growing up can seem overwhelming, but the financial head start will be appreciated in the future.

Let One of Our Certified Financial Counselors Be Your Co-Pilot

For extra guidance, our certified financial counselors can tailor recommendations for your child’s future needs, like college, a first car, big dreams and everything in between.

Ready to start saving for your child’s future? Open an Al Pacu Club Savings Account with PACU today.

Minor accounts of youth 17 years old or younger must have a parent or legal guardian as a joint owner on credit union accounts. If a legal guardian, you must provide legal guardian documents to open.