Smart Starts: Empowering Kids with Financial Knowledge this School Year

As students return to the classroom, it’s not just about dusting off backpacks and buying a new wardrobe; it’s also the perfect time to sharpen their financial skills. At PSECU, we believe that financial education is just as important a subject as math and science. Our youth accounts are designed to make learning about money fun and engaging, preparing the next generation for a financially savvy future. To get better insight into how PSECU teaches kids about money, we interviewed Sharon Eiswert, PSECU’s Director of Marketing & Deposit Strategy, to learn more.

Sharon: With the beginning of a new school year, we're reminded that financial literacy is a subject not taught in most schools, yet it’s a source of stress for parents and kids. In fact, our studies show that 64% of our members don’t feel they are as financially literate as they want to be. Additionally, 76% of our members feel that it’s vital that PSECU offers robust financial education. So, we need to give kids more personal finance education, to start them early on the path towards financial literacy.

Sharon: PSECU has a youth savings account that offers an excellent 4.00% APY¹ rate on balances up to $500. Finding a rate that good on a savings account is a win! Kids keep that special savings rate until the age of 18, so they are getting more for their money. When kids are old enough to be responsible stewards of their own spending, they can open a checking account that functions just like an adult's - even with the ability to accept direct deposits!​ And, they can keep this account through adulthood, helping them build a strong financial foundation for the future.

Sharon: We believe that teaching kids about managing their finances while they are young is an important role that we need to play. However, we needed to do it in a different way, making it fun, interactive, and app-based to appeal to a generation that is growing up with smartphones and social media. That's why we carefully chose Greenlight as a partner. They have great expertise in how to interact with Gen Z and Gen Alpha, and how to make learning about finances – which, honestly, is not the most interesting topic for kids – fun!

The Greenlight app, which is free² to our members, offers tailored experiences for kids, like a financial literacy game called “Level Up” that features educational challenges and prizes for completing levels. Kids can also learn to spend wisely with their own customized debit cards. The Greenlight app also has a version for parents where they can set controls on how much and where their kids spend, set up chores, and automate allowances. Greenlight really helps foster those important discussions about the choices kids make with their money using real-life situations.

Sharon: One of the most important concepts that kids and teens should learn about is the magic of dividends - it does the work of saving for you! With our 4.00% APY savings rate up to the first $500, our youth accounts help teach kids about the value of saving early, as they can watch their money grow over time. Any amount, even a small one, will grow more in a savings account than it will sitting in a piggy bank. Parents can encourage their kids to set aside a portion of the money they receive - for example, when kids get birthday cash (which we know they do!). Parents ​can log into our easy-to-use tools like online banking or the mobile app to show their kids the interest their accounts are generating each month. 

Sharon: Young people are generally underprepared for managing their finances. They often don’t get a proper financial education in schools, and many grow up mimicking the financial habits of adults around them. The average individual debt in the U.S. has risen significantly across generations, with Millennials now carrying an average debt of more than $78,000. Couple those two things together and it’s imperative to introduce financial education early in life so that young people can learn and practice healthy financial habits throughout their entire lifetime. Studies show that children who receive financial education at a young age are more likely to develop positive money habits, such as saving and investing, which can lead to long-term wealth accumulation.

Sharon: Working for a financial institution like PSECU, you really understand that every member has a unique financial situation. Our focus is on helping our members make financially smarter decisions.

As the mom of a 13- and 16-year-old, I think about financial education almost every day, especially since my kids are making financial decisions - both good and bad – on a daily basis. My own parents taught me about saving money from a young age, and those lessons have stayed with me. 

Last but certainly not least, I’m a volunteer and advocate for Junior Achievement, which aims to provide children from grade school to high school with a solid grounding in finances. Just by going into classrooms and teaching kids simple financial concepts, I can see the positive impact it makes. 

Financial education is a powerful tool that equips kids with a way to tackle their future with confidence. PSECU’s youth accounts, alongside the Greenlight debit card and app, offer practical and engaging ways to teach children and teens about money management. Starting these lessons now helps set them up for a lifetime of smart financial decisions.

As you get ready for another school year, consider giving your kids a head start on their financial future, too. With PSECU, you’re not only opening an account that will help them for years to come, but you’re also helping paint their path to a brighter financial future. Here’s to a school year filled with learning, growth, and setting our kids up for success in every way!

¹ APY denotes Annual Percentage Yield. To be eligible for the Youth Savings rate, the primary account owner must be under the age of 18. All eligible Youth Savings Share accounts earn 4.00% APY for balances of $.01 to $500.00. For balances of $500.01 and over, the Regular Savings Share APY will apply. Rates and information are subject to change at any time. Fees could reduce earnings on the account(s). The disclosed dividend rates are variable and may change after the member opens the account(s). Find our current dividend rates at psecu.com/rates. PSECU requires a $5 minimum balance to open and maintain a Regular share account. This $5 share account deposit is also required to be eligible to receive the Youth Savings rate, and the member must be in good standing as defined by PSECU's Bylaws, Article II, Section I. PSECU will make a $5 minimum share purchase on behalf of the member.

²PSECU members are eligible for the Greenlight SELECT plan at no cost when they connect their NCUA-insured PSECU checking account as the Greenlight funding source for the entirety of the promotion. PSECU debit cards are not eligible for this promotion. Subject to minimum balance requirements and identity verification. Upgrades will result in additional fees. Plans start at $4.99/mo. This promotion will end on 7/30/2024. Beginning 8/1/2024, customers will be responsible for associated monthly fees. See terms for details. Offer subject to change.    

Greenlight is a financial technology company, not a bank. The Greenlight app facilitates banking services through Community Federal Savings Bank (CFSB), Member FDIC.