When to Open a Savings Account for Your Child
Published: August 28, 2018
Raising a child is no easy feat! As a parent, you play a variety of roles, from taxi driver to homework tutor to all around cheerleader. But one of the most important pieces of parenthood is saving for your child’s future. Educating your child early on about the importance of saving money will help guide them to a successful future.
Start now! It’s never too early to begin saving for your child’s future.
There are few options available when it comes to opening a savings account for your child.
Most financial institutions offer special account programs especially designed to teach young children the fundamentals and importance of saving.
M3 Money Club Youth Program
At County Federal, we offer the M3 Money Club Youth Program. The M3 Money Club is for our young members (ages 12 and under) and rewards your child for making your M3 account grow. You can open your child’s M3 Money Club account with a minimum deposit of $25.
Coverdell Education Savings Account
If saving for college is the main goal for your child, you may want to consider a Coverdell Education Savings Account (formally known as the Educational IRA). It may be the best way for you to build college education savings for your children or grandchildren under age 18. You can contribute up to $2,000 per tax year per child until the child turns 18 (some exceptions apply). Contributions are not tax-deductible, but earnings accumulate tax-free. Funds used for higher education expenses are tax-free when withdrawn, as long as the recipient is under age 30.
Which one is right for your child?
You don’t have to make this decision on your own. Instead, contact us. We’re here to help you make the best decisions for your child’s future. To learn more about Santa Clara County Federal Credit Union, click here.