FOLSOM Calif.–SAFE Credit Union has said it is expanding its checking account offerings to children as young as six years old.
This initiative is part of SAFE’s Family Banking suite, “designed to help families manage their finances collectively while teaching essential banking skills to the next generation,” the credit union said.
According to the $4.43-billion SAFE CU, the new accounts facilitate parental oversight, allowing parents to monitor transactions, manage debit cards, and seamlessly transfer funds for gifts, allowances, or chores through SAFE’s mobile app and online banking platform.
‘Stop & Think About It’
“Some may think it’s very unusual to provide checking accounts to first-graders, but not if you stop to think about how people handle their finances these days,” SVP-Marketing and Communications Allison Yee-Garcia said in a statement. “By opening access to our checking accounts to youngsters, they can learn how to save and spend money in today’s economy. They get to purchase things with their very own tap-to-pay card just like their parents do, teaching them the important connection between income and spending capability.
“Studies show that most children’s attitudes about money are formed by age seven, making it crucial for parents to initiate positive and hands-on financial discussions early,” Yee-Garcia added in a statement. “This is a great opportunity for families to engage in meaningful conversations about money management together.”
The Benefits
According to SAFE, benefits of the account include:
- Financial Education Opportunities. “Children learn to engage with modern financial transactions in a cashless society. Parents can directly teach their children to use their own debit cards at the point of sale, track their savings, and monitor spending through the SAFE Mobile App. The option to integrate their debit cards into digital wallets enhances convenience.”
- Promotion of Family Discussions. “Regular account check-ins can be a platform for ongoing discussions about money. Parents can help children understand the relationship between account balances and spending, reinforcing valuable lessons during shopping trips, both in-store and online.”
- Establishment of Banking Relationships Early. “Children will form a lasting relationship with the credit union, providing a secure avenue for saving gifts and earning money. As they transition into adulthood, this relationship offers pathways to future financial products such as loans and mortgages.”
Additional Products
SAFE said it also offers other products for children and teens, and noted that at age 18 young adults have the option to apply for a secured credit card, enabling them to build credit responsibly with manageable purchases and timely payments.