Routing Number | 255077370

Financial Wellness

  • June 1, 2023

Teach Your Kids to Save

Financial experts say that if you want your kids to have financial smarts, then the best way to show them is what you do and to give a little nudge in the direction by opening up a savings account for them at the credit union. This is the beginning of smart money management.

Financial literacy is important, so your kids having their own accounts is a great way to teach them how to monitor their savings and spending habits. Studies show that children from low or moderate income families, who have a savings account for college, are four times likely to graduate college—even if the account holds less than $500. 
As your kids move through the various phases of life, your messaging about money may change to meet the needs of your kids. When they're little, it must be simple. "Here's a quarter for you, because you fed the dogs, and you should put it in your piggy bank.' Once you collect a sum, a field trip to a Tower branch to deposit their $10 will help them understand that the credit union keeps your money save, earns interest, and you can withdraw those funds if you need them.

Following are some guidelines to helping them save:

Start Early. After the baby's born, why not set him or her up with their own savings account? It can be used as a college fund or for whatever they choose when they get older. Remember, the money that doesn't first get to sit in your pocket, doesn't get spent. Save $50 or whatever you can afford each payday and have it directly sent to your child's credit union account via payroll deduction.

Earn your own money. Even if you have the means to let your teenager sit around the house all day during the summer, don't pass up the opportunity to teach them some money skills. "You need to get a part- or full-time job for your expenses." You might be met with a response like: "Suzy doesn't have to work, her parents pay for everything." You can say "Fortunately, your parents don't. I'm not your personal ATM machine anymore. You'll enjoy working and making your own money to save and spend." Bottom line: when they get old enough to work, it doesn't have to be you paying for everything. Tuition – yes, sports gear – yes, school trips – yes. Other things may be a hard no. This is a great time to have a conversation about needs vs. wants, which are two totally different things that our youngsters need to be taught.

Set Goals. Your kid may not think of he/she saving money towards a 'want', but saving incrementally over time can add up to the amount they need—think birthday or holiday monetary gifts. The point is that they don't need to spend it all at once. Encourage them to have a purpose for their money. For example, saving for a new bike. Saving money to a child may seem pointless to them, until you show them that virtually everything they do requires money. Candy, movies, electronics, whatever you choose.

Give incentives. Nothing motivates financial awareness and a solid savings habit like interest or matching funds. Show your child how earning interest works: for simply leaving her money in the account, he or she earns a bit more of it. If you want to reinforce saving even more, consider matching your child's savings when, say he or she's saving for a particular goal. "If you save $50 toward your ice skates this month, I will match that amount."

Show them where to save. Do you do most of your saving at Tower? Why not introduce your children early on to the value credit unions have? Your five-year-old won't care; but your 14-year old may be open to listen. Saving may start out as quarters in the piggy bank, but that can translate to a youth account at Tower.

Track Spending. Encourage your youngster to keep track of where their money goes. It may unearth expenses that have been frivolous—and some that aren't. When you communicate this to your child, remind them that good savings habits are important and will keep them comfortable along the way. It's also a good idea to save for life's emergencies.
One of the best ways to teach your children is to lead by example. This is an opportunity for you to stay on track financially and discuss mistakes that you may have made along the way. In the end, your honesty and consistency about financial habits will stick with your children for many years, even if they don't seem open to it at first. Be patient, and you can prepare your children for a lifetime of financial success. 

Check out this site that offers a focus on saving and budgeting using free online games for your child.

How to Open an Account at Tower
for Those Under Age 18

  • Visit a Tower branch or call our Member Service Center at 866-56-TOWER. New accounts for minors may not be opened online.
  • One form of appropriate identification for the minor is required, as well as a signature if the minor is over age 10.
  • To open a savings account for a minor, acceptable ID includes birth certificate, Social Security card, US passport, driver's license, state ID, or military dependent ID.
  • To open a checking account, the minor will be required to provide state or government-issued ID and must sign the account application, including US passport, Driver's license, State ID or Military Dependent ID. 
  • With an adult joint owner, minors between the ages of 14 and 17 can open a checking account with a debit card.
  • LIMITED TIME! Open a Prime Share Savings account for your child with $25 or more before June 30, 2023 and your child will receive $25 bonus.* Details.

*Eligibility requirements: This offer is valid for new Tower members age 17 and under who open a new Prime Share account with $25 or more. Offer not available to existing Tower members, or those whose Prime Share accounts have been closed within 90 days. You can receive only one new Prime Share account opening related bonus per member. The minimum deposit required to open a Prime Share account is $5. An adult must open an account for the minor. The minor member must meet all eligibility requirements in order for the account to be established. To receive a $25 bonus: Open a new Tower Prime Share Account with $25 or more for a minor age 17 and under between 5/21/23 and 6/30/23. After you have completed all the above requirements, we'll deposit the bonus to the minor's new account within 60 days. To receive this bonus, the enrolled account must not be closed or restricted at the time of payout. If the account is closed within six months of account opening, Tower reserves the right to deduct the bonus from the account at the time of closing. Cash bonus is considered interest and is subject to taxation. This offer is subject to change and may be discontinued at any time without prior notice. Prime Share account annual percentage yield is 0.85% effective 7/15/2024 and is subject to change.


Resources: Consumer Financial Protection Bureau,, U.S. Bank, Next Gen Personal Finance