A Note to Parents of Young Adults… Your Child’s Financial Future

 

Now, more than ever, it’s important to teach children about financial responsibility beginning at an early age.  By high school, most students already have financial habits in place – some are good, some are bad.  As they’re entering their college and young adult years, it’s important that they start on sound financial footing.

 

While many people don’t realize it, having a good credit score is very important, especially for young adults entering the “real world.”  Car insurance premiums and loan interest rates are often based on a credit score – the lower the score, the more they pay.  A low credit score can also result in not being able to rent an apartment or not being hired for a job.  Making the transition to adult life can be a little easier if they’ve taken advantage of the products and services available right here at CCU.

 

Students in high school can start learning to manage their money by opening a CCU checking account and using a debit card.  CCU’s on-line banking and eStatements will allow them (and you) to review their account balances, make transfers and more.  After they’ve mastered balancing their checkbook, it may be time to add a low-limit credit card to their wallet.  Whether you designate it for “emergency” use only or allow occasional purchases that are repaid from an allowance or part-time job, teaching them to use a credit card and promptly repay the balance will establish a good credit history and credit score.

 

Whether your child is still in high school, off to college, entering the workforce or the military, Cloverbelt Credit Union can help get them started on the path to financial responsibility with these tools.

 

Savings Account – Learning good savings habits is the first step in financial accountability.  Work with them to set short-term savings goals to buy a toy or game, concert ticket or even a car.

 

FREE Checking – No minimum balance requirement and no monthly service fee.  Access the account using a FREE debit card, checks or electronic deposits and withdrawals.

 

FREE Online Banking – Review account balances and transaction history, transfer funds between accounts, view statements and pay bills.  Parent and student accounts can be linked for quick access, should an emergency cash transfer be needed. 

 

FREE Debit Card – They’ll have convenient access to their checking and savings accounts at ATMs around the country to make cash withdrawals and transfers.  Card can also be used at merchants to pay for purchases from their checking account. To apply for a debit card on an existing checking account visit any CCU office or click here.

 

Low-Limit Credit Card - Debit cards are great for making everyday purchases and accessing cash but it’s a good idea to have a back-up payment source.  Whether it’s buying textbooks, paying for emergency car repairs or unexpected expenses, having a credit card available gives parents peace-of-mind knowing their child is prepared.

 

Visa College Rewards Credit Card – Ideal for a college student with a work study or part-time job.  Available to students age 18+ attending an accredited 2-4 year school.  Limits range from $300 to $1,000 and there’s no annual fee.  Each time the card is used, students earn reward points that can be redeemed for music downloads, gift cards, merchandise and more. For more information or to apply for a Visa College Rewards credit card, click here.

 

Visa Young Adult Credit Card – A great card for a young adult trying to establish or improve their credit.  For those age 16 to 20 with a cosigner.  Limits range from $300 to $2,000 and there’s no annual fee.  After at least 18 months of good payment history and a demonstrated ability to repay, the cardholder may request that the cosigner be removed. For more information or to apply for a Visa Young Adult Credit Card, click here.

 

Visa Travel Money Card - Students attending school or traveling abroad can access this prepaid debit card at merchants and ATMs around the world. If funds get low while traveling, card can be reloaded at any CCU office or online. It's also a safer way to access funds while on spring break or class trips. Visa Travel Money Cards can be purchased at any CCU office.

 

Scholarships - Each year CCU awards a number of scholarships to graduating seniors who are continuing their education at a 4-year college or 2-year technical or trade school. For more information or to apply for a CCU scholarship, click here.

 

Sallie Mae Student Loans - If your student still needs money for school after maximizing grants, scholarships and federal loans, the Sallie Mae Smart Option Student Loan may be the ideal funding solution. For more information or to apply for a Sallie Mae Smart Option Student Loan, click here.