Teaching Children Financial Responsibility:
As your children grow up, they need guidance in many areas, including financial matters. CACCU has many services that can help you educate and prepare your children for a better financial future…while they are still living at home.
Wise money management skills are important to learn. Teach your children while they are young how to budget money for spending and saving. As they become young adults, it is beneficial that they understand financial matters such as:
- How to read a credit union statement
- When you borrow money, how important is Annual Percentage Rate
- Why is Annual Percentage Yield important on savings and certificates
- How will my use of credit NOW affect my future
Having a good credit score is becoming more important each year. Did you know that businesses often look at an individual's credit score as a behavioral pattern (likelihood that they will get their money back)? For instance, credit reports are usually run when:
- A person wants to move into a house or apartment
- Hooking up utilities
- Buying a vehicle or a home
- Obtaining credit cards or department store charge cards
A credit score can determine if a young person will be able to get the above services and how much they will pay for those services.
As your children apply for loans, coach them with the information necessary so the loan will benefit them now and in the future. Take a moment and visit some of the helpful areas we have provided within this website. We are sure you will find the tools, resources and information very helpful.
Junior Saver's Account (for under age 18)
Student Accounts (ages 18 – 25)
- Visa Debit Card
- Visa Credit Card
- Credit Builder Program
- First Time Buyer Program
- Online Banking
- Bill Payer
Requirements: Must be a student between 18 and 25 years of age. Must have a Primary Savings Account and an initial checking deposit of $25.00 to open the checking account.
Benefits: FREE checking with no direct deposit or minimum balance requirement. Enjoy FREE Online Banking, E-statements, and Bill Payer. FREE ATM access at over 28,000 CO-OP Network ATM machines located throughout the United States and Canada . You can also access CO-OP ATMs at over 5,500 7-Eleven stores without a surcharge fee.
Jr. Saver's Account
The Jr. Saver's Account is the perfect account for teaching your child the importance of saving while allowing him or her to earn dividends. This account is designed for members under the age of 18. A parent, grandparent, or legal guardian MUST be a joint owner on the account until the minor reaches the age of 18.
The Jr. Saver's Account allows a minor to make withdrawals and deposits to the account without requiring the joint owner to be present. This gives the minor control and experience in maintaining his/hers own account.
For more information about our Jr. Saver's Account, please call one of our friendly member services representatives, or visit a local California Community Credit Union branch office near you.
Saving for Higher Education
Saving for a higher education takes planning. If you are in high school, you should already be following a plan. Hopefully, you have a special savings account or a Coverdell Education Savings Account established for this purpose. If you do not have a plan, speak with your parents to determine the best way to achieve your educational goals BEFORE it is too late.
Don't Wait: Start saving today; even small deposits will add up to huge savings
- Remember to record your deposits and withdrawals in your register immediately
- Accurately record all your transactions and balance them to your credit union statement
Pay Yourself First: Teach your children to set a percentage of their earnings aside
- Always deposit at least part of your allowance or paycheck
- Cash gifts from relatives? Save at least part of it for your future
- If you receive cash from the sale of an item, deposit part of the cash to savings
Certificates: Earn higher dividends (interest) than with regular savings
- Certificates help resist the temptation to withdraw from your savings
Communicate: Speak with your children regularly about educational needs
- Spend time with your children and educate them in financial matters
Coverdell Education Savings Account
A Coverdell Education Savings Account can help you with future educational expenses, such as your child’s college education. This non-deductible account allows tax free withdrawals to pay for qualified education expenses such as tuition, fees, room and board, books and supplies.
Coverdell Education Savings Features & Benefits
- Federally insured by the NCUA
- Can be established for any child (Designated Beneficiary) under age 18
- Contributions can be made up until the child’s 18th birthday
- $2000 annual limit per beneficiary
- The contributor does not have to be a relative of the child
- Contributions are made with after tax dollars; earnings are tax-deferred
- Earnings are tax free when distributions are used for qualified education expenses of the Designated Beneficiary.
Eligible Institutions: Generally any accredited
- Junior or community college
- Private elementary or secondary school
- Trade schools
Contact us and we will be glad to send you a brochure on this type of savings account.
As with any tax advantage savings account, it is always a good idea to consult a tax professional.