Talking about money with children and teens can feel overwhelming — but the sooner they start learning, the more confident they can be as they head into adulthood.  

At Great Lakes Credit Union (GLCU), we believe financial education should be practical, accessible, and fun. That’s why our youth savings options are designed to help young members develop healthy saving and spending habits from day one. 

Whether you’re a parent opening a savings account for a young child or a teen ready to take a more active role in managing money, GLCU offers tools, technology, and education to support every step of the journey. 

Why Start Saving Young? 

Early experiences with money shape how young people handle finances for the rest of their lives. A youth-focused savings account can help: 

Savings Options Designed for Kids and Teens 

GLCU’s Youth Savings accounts are crafted with the needs of young members and their families in mind. These accounts offer: 

These tools give teens an easy, secure way to monitor their account, build good habits, and stay engaged with their financial goals. 

Making Financial Education Engaging 

Financial literacy shouldn’t be boring or intimidating. GLCU supports youth financial education with interactive tools that make learning hands-on, including: 

Even kids as young as 2 or 3 can start understanding simple money concepts. Through age-appropriate activities, children begin to learn the value of saving, sharing, and spending thoughtfully. 

GLCU also supports financial literacy simulations that introduce real-world concepts like budgeting, paying bills, and navigating everyday financial challenges. These experiences help young people understand how the choices they make today impact their future. 

For teens beginning their journey toward financial independence, GLCU pairs the Youth Savings account with educational materials and access to products designed to promote a positive financial future.  

Ready to Help a Young Saver Get Started? 

If you’re ready to introduce a child or teen to the world of smart saving and responsible money management, GLCU is here to help. Visit our Youth Savings page to learn more about our youth accounts and stop by a branch if you’re interested in opening an account. 

Together, we can help the next generation build a stronger, more confident financial future. 

The information in this post is for educational and informational purposes only and does not constitute investment or financial advice. You should consult a licensed financial advisor before investing in any financial product or service.   

Financial habits are formed at a young age. When you shop with your kids, they notice how you handle money – whether you buy things on a whim or save for important items. By the time your kids are teens, they’ve already got a few ideas about the importance of money, and how (or how not) to use it. However, it’s never too late to set your kids up for success by teaching them smart money management skills.

Here are five money management habits that can help set teens up for success:

1. Save money instead of spending it. Teens, like adults, are bombarded with ads every day – especially while scrolling through social media. Exercising control and financially taking care of your future self is a key skill for teens to learn. Always giving into temptation and making impulse purchases can lead to empty bank accounts and mounds of debt. Encouraging your teen to set aside a certain amount of money on a regular basis instead of spending it can help build their savings.

2. Weigh the opportunity costs of every purchase decision. Opportunity costs are what you give up to purchase something else. For example, buying a shirt for $25 means you may not have money to go out to eat with your friends.

Consider teaching your teen that they are in control of the decision-making process. This includes weighing all the costs of their purchases to determine if they’re making the best decision for their future. Making good time management decisions is another key skill for teens to learn as they enter the workforce. After all, once they start working, there is a dollar amount attached to their working hours.

3. Set S.M.A.R.T. financial goals. S.M.A.R.T financial goals are goals that are specific, measurable, achievable, realistic, and time bound. Setting a financial goal of “I want to save money” is a good idea in theory, but in practice, it doesn’t identify the purpose for saving money, or the date it’s needed by.

Making savings goals specific, such as “I want to save $400 for a mini drone in eight months,” is more action-oriented and will help your teen be more motivated to track and achieve their goal by the timeframe they set. It’s okay to change their goal and use the money for something else if their priorities change. The important thing to remember is that they’re saving it for a specific purpose.

4. Don’t spend more than you make. Not spending more than you make is an important lesson for teens to understand. It’s easy to want to “keep up with the Joneses” and fall into the trap of buying the biggest, the best, and the most expensive version of everything just to match other people’s lifestyles.

For many teens, who may not earn much at part-time jobs, babysitting, or through weekly allowances, this can be difficult. Even though teens don’t have regular bills or significant financial decisions to make, learning to live within their means at a young age will help set them up for success when they’re adults. 

5. Use money as a tool. While money matters, it isn’t the ultimate goal, and if we base our happiness on it, we’ll never be truly happy. Yes, we need money to live. However, we should use it as a tool to help shape the way we want to live our lives.

Your teen can do this by finding ways to make extra money, saving to reach financial goals, and investing wisely. The important thing is to always keep money in perspective: that it’s just a part of life, and not the be-all, end-all of a happy, fulfilling life.

Teen Savings and Checking Accounts at GLCU

Forming great money habits early on will help your teen learn how to live a financially stable life now and in the future. Smart money management skills and a healthy attitude toward finances can set your teen up for success when they reach adulthood.

This blog was based on GLCU’s Adolescent$ five-part video series designed to help teens and young adults learn good money habits. Watch the video series here. Interested in opening an account for your teen? Learn more about our Adolescent$ and youth accounts.

The information in this post is for educational and informational purposes only and does not constitute investment advice. You should consult a licensed financial advisor before investing in any financial product or service.

How to manage money successfully is one of the most important skills a young person can learn. Teaching kids and teens key money management skills can help them thrive when they achieve financial independence as adults.

Here are a few ways you can teach kids about money:

Open a Youth Savings and/or Checking Account

If your kids earn an allowance or work part-time, opening a youth savings account for them is a hands-on way to teach them money management skills. With an account of their own, your children can save for things they need and want, and watch their money grow as they earn dividends on their balance.

Some youth savings accounts also offer educational resources such as apps, videos, games, and other activities to make learning about finances fun. Children aged 12-18 can open youth accounts designed to help young adults achieve financial independence.

Educate about Budgeting and Saving

Working with your kids to set a budget for saving and spending their money can help them understand the importance of smart and sustainable money management. For example, encouraging them to set money aside to pay for the things they need (clothes, gas, phone bill, car insurance, etc.) before the things they want (video games, toys, concert tickets, sweets, etc.) can be an important money management lesson to learn before they enter the “real world.”

Teaching your children to save money for specific goals and for emergencies can help them understand how to prioritize their spending. These conversations and exercises teach kids to live within their means, and to not overspend – skills they’ll need when they’re on their own.

Explain the Importance of Credit

Building credit and using it responsibly are two key money management skills that can set young adults up for financial success later in life. Having a good credit score contributes to their ability to rent an apartment, qualify for a mortgage, get an auto loan, apply for credit cards, and more.

Credit is both a necessity and a responsibility – if credit cards aren’t used wisely and strategically, then you can easily harm your credit score, rack up fees and interest, and bury yourself in a mountain of debt.

As your kids get older and become more financially independent, consider teaching them how to build good credit and to use credit cards responsibly. Some guidelines to follow include paying your credit card balance on time and in full each month, not utilizing more than 30% of your available credit limit, and creating a monthly budget.

Teaching Kids Money Management Skills for Life

Setting your kids up for financial success while they’re young will pay big dividends in their future. It’s never too early – or too late – to teach your kids about how to manage their finances. By developing healthy money management skills, your children will feel confident knowing they’ve acquired smart habits for lifelong financial well-being. 

If you’re interested in opening a youth savings account for your child, check out GLCU’s Money Mammals® accounts. These accounts are designed for kids from 0-11 years old, and include resources such as games, videos, books, apps, and more through the Saving Money Is Fun Kids Club™. At GLCU, your child can start earning dividends on savings accounts with just a $1 deposit.

We also offer Adolescent$™ accounts for youth aged 12-18. Adolescent$™ account holders also gain access to videos, blogs, and other content. Account holders who are 15 years and older can open their own checking accounts (with their parent or guardian’s permission) to learn about money management firsthand. Adolescent$™ account holders also have access to free digital banking services, as well as bill pay.

The information in this post is for educational and informational purposes only and does not constitute investment advice. You should consult a licensed financial advisor before investing in any financial product or service.

Teaching your child money management skills can set them up for lifelong financial success. A youth savings account can teach your child how to save and manage money, in addition to other financial literacy skills.

Read on to learn more about youth savings accounts.

What Is a Youth Savings Account?

A youth savings account is a deposit account specifically designed for young people to promote financial literacy at an early age. Some youth savings accounts even offer educational resources such as apps, games, videos, and other activities to make learning about money more engaging.

Credit union members aged 12-18 can open youth savings accounts that are geared toward achieving financial independence. Like savings accounts designed for younger members, youth savings accounts for young adults can help teach healthy money habits through interactive activities and informational content.

What Are the Benefits of Youth Savings Accounts?

Youth savings accounts can help teach your child important money skills such as budgeting and saving, especially if the account offers additional educational games and activities. Learning practical financial skills starting at a young age can help set your child up for success later in life.

With a youth savings account, your child can learn key skills such as:

By opening a youth savings account for your child, you can kickstart a conversation about the importance of money. This can help lay a solid foundation for families to discuss finances together. Plus, your child can watch their hard-earned savings grow as they earn dividends on their account balance.

Learning Money Management Skills for Life

Youth savings accounts offer a hands-on way to teach kids about the importance and value of money. For teens, having a savings account of their own can help them get started on the journey to financial independence. No matter your child’s age, a youth savings account can help them learn lifelong money management skills.

If you’re interested in opening a youth savings account for your child, check out GLCU’s Money Mammals® accounts. These accounts are designed for credit union members ages 0-11 years old, and include resources such as games, videos, books, apps, and more through the Saving Money Is Fun Kids Club™. At GLCU, your child can start earning dividends on their savings with just a $1 deposit.

We also offer Adolescent$™ accounts for youth aged 12-18. Adolescent$™ account holders also gain access to videos, blogs, and other content. Account holders who are 15 years and older can open their own checking accounts (with their parent or guardian’s permission) to learn about money management firsthand. Adolescent$™ account holders also have access to free digital banking services, as well as bill pay.

The information in this post is for educational and informational purposes only and does not constitute investment advice. You should consult a licensed financial advisor before investing in any financial product or service.

If you’re considering opening a savings account, taking out a loan, or applying for a credit card, it’s important to understand certain financial terms. APR and APY are two terms that are often confused. Even though both APR and APY are ways of calculating interest, they apply to different things.

Keep reading to understand the differences between APR and APY.

APR and APY: What You Need to Know

APR stands for annual percentage rate. APR reflects the cost you pay each year to borrow money (including fees) expressed as a percentage. This rate refers to the amount of interest you’ll pay on loans or credit card balances.

When you take out a loan, you typically have to pay back the original amount plus interest. Your interest rate will vary depending on the type of loan you choose and your specific financial situation, including the length of the loan and your credit score, among other factors.

APR is your yearly interest rate, inclusive of any costs or fees linked to your loan. Evaluating APRs from various loans or lenders can help you find the most suitable financial option for you. For credit cards, you can avoid paying interest and fees on purchases if you pay your balance in full and on time each month.

Some credit cards offer an introductory 0% APR on balance transfers from existing cards. This can help you avoid paying interest if you know you’ll have the funds available to pay the balance down the road. Just make sure to pay the balance in full before the intro period ends to avoid paying interest on your balance transfer.

APY stands for annual percentage yield. APY is the amount of interest earned in savings accounts or other investments yearly, rather than interest paid on a loan. The higher the APY, the more interest you’ll earn on your money. APY includes compound interest while APR does not.

In simple terms, compound interest is interest you earn on top of interest as your balance grows. With compound interest, you earn money on both the initial deposit and the interest that accumulates over time. If you’re looking to save or invest, you’ll want to compare the APY and consider how often the product’s interest compounds.

APR and APY: Key Takeaways

You’ll want to aim for the lowest APR on loans to save on interest payments. Also, remember to pay your credit card balance in full and on time each month to avoid interest and fees. Having the highest possible APY will help you maximize your savings. 

As a not-for-profit credit union, GLCU promotes the financial well-being of our members. In addition to our many educational resources and outreach efforts, we also give back our profits to our members in the form of reduced or eliminated fees, higher savings rates, and lower interest rates on loans. Check out our rates and consider opening an account today.

Do you want to buy a home but are worried that you do not have enough saved for the down payment? You’re in luck! If you are an Illinois resident, you may qualify for the myriad of down payment assistance programs offered through the State and local municipalities.

The Illinois Housing Development Authority, IHDA for short, offers down payment assistance in various tiers. The amounts range from $6,000 to $10,000. There are different repayment requirements for each amount listed. For example, the $6,000 down payment assistance amount is 4% of the home purchase price for a maximum of $6,000. You do not have to pay this back as it will be forgiven over a 10 year span as long as you remain in your home.[1] The $10,000 in down payment assistance covers 10% of the purchase for a maximum of $10,000. This assistance is paid back monthly over ten years at a 0% interest rate. IHDA has a list of participating lenders on their website.

The Federal Home Loan Bank of Chicago has two programs, Downpayment Plus & Downpayment Plus Advantage, that also offer down payment assistance. Downpayment Plus is a matching program that provides down payment and closing cost assistance for income-eligible homebuyers. The assistance is provided in the form of a forgivable grant paid on behalf of the borrower at the time the borrower closes on mortgage financing with a participating FHLBank Chicago member financial institution. Grants are forgiven on a monthly basis over a five-year retention period. Downpayment Plus Advantage is a similar program but assists income-eligible homebuyers participating in homeownership programs offered by nonprofit organizations that provide mortgage financing directly to the homebuyer; it is not a matching program. Nonprofit organizations providing direct first-mortgage financing, such as Habitat for Humanity or Neighborhood Housing Services, must partner with an FHLBank Chicago member financial institution to access DPP Advantage funds. Grants are forgiven on a monthly basis over a five-year retention period.[2] The maximum grant amount for both programs is $6,000.

Local organizations and counties also offer their own down payment assistance programs. The MMRP Purchase Assistance Grant provides up to $15,000 in down payment assistance for the purchase of a home in one of the City of Chicago’s 10 Micro Market Recovery Program (MMRP) Areas. This grant is available to low and moderate-income households earning up to 120% of the Area Median Income (AMI) for the Chicago Metropolitan Area.[3] It does require that you be a first-time homebuyer or not have owned a home in the previous 3 years.  More information can be obtained by contacting Neighborhood Housing Services of Chicago.

Community Partners for Affordable Housing, CPAH, provides eligible Lake County, Illinois homebuyers with up to 5% of the purchase price to help with down payment and closing costs. Assistance is provided in the form of a 0%-interest deferred loan with no monthly payments, forgiven at a rate of 1/60th every month. Loan forgiveness begins 60 days after closing. The loan is fully forgiven after 5 years and 60 days in the home. Other eligibility factors require that you put down $1,000 or 1% of the purchase price, whichever is greater, and that you qualify for financing with a CPAH Participating Lender.[4]

Kane County, Illinois offers a First-Time Homebuyer Loan Program that provides up to $10,000 in down payment and/or closing-cost assistance to first-time homebuyers in the form of a zero-interest, deferred-payment loan.  No interest accrues on the loan, and no payments are due until the home is sold, the title is transferred, or the home is no longer used as the homebuyer’s principal residence. Up to an additional $10,000 may be available if the home purchased is located within the city limits of St. Charles, under these same terms and conditions.[5] A nice perk with this program is that Kane County does not require First Mortgage Lenders to be pre-qualified. Homebuyers may work with a Lender of their choice to obtain their first mortgage.

There are down payment assistance opportunities in other counties and cities throughout Illinois from Madison County down south to Rockford up north. Madison County Community Development offers a 5-year forgivable loan, based on 80% of area median income or less, for closing costs and down payment. This loan, for up to $5,000, will be forgiven only after five full years’ occupancy. Homebuyers who receive funds must obtain one-on-one pre-purchase counseling from a HUD-certified agency. A list of agencies may be obtained from a participating lender.[6] The city of Rockford offers a Homebuyer Assistance Program that provides financial assistance to make the purchase of a home more affordable to income-eligible homebuyers. The city of Rockford determines the amount of financial assistance, up to a maximum of $14,999, based on the applicant’s income, debt, and anticipated mortgage. The homebuyer must live in the home from the time of purchase through the end of the forgivable loan; approximately 6 years.[7]

You may be wondering why there are so many down payment assistance programs available to homebuyers. The Community Reinvestment Act (CRA) of 1977 required federally regulated banks to make an effort to lend to low and moderate income clients in their service area.  As a result, most of the larger federally regulated banks and mortgage lenders in our country have created CRA home loan programs.[8] Some of the programs mentioned above are the result of this initiative.

References:

[1] “IHDA Mortgage Program Directory.” IHDAmortgage.org, Illinois Housing Development Authority, www.ihdamortgage.org/program-directory.

[2] “Downpayment Plus Programs: FHLBank Chicago.” FHLBC.COM, Federal Home Loan Bank of Chicago, www.fhlbc.com/community-investment/downpayment-plus-programs.

[3] “Grants at Nhschicago dot org.” NHS Chicago, Neighborhood Housing Services of Chicago, www.nhschicago.org/purchase-assistance/mmrp-purchase-assistance-grant/.

[4] “Down Payment Assistance.” CPAH Down Payment Assistance, Community Partners for Affordable Housing, www.cpahousing.org/home-buying/down-payment-assistance/.

[5] “Pages   – First-Time Homebuyer Program.” Kane County – Established January 16, 1836, Kane County Office of Community Reinvestment, www.countyofkane.org/Pages/ocr/firstTimeHomebuyer.aspx.

[6]Madison County HOMEbuyer Program, Madison County Community Development, www.co.madison.il.us/departments/community_development/homebuyer_program.php.

[7]Homebuyer Assistance Program, City of Rockford Community & Economic Development Department, cdn.rockfordil.gov/wp-content/uploads/2020/08/Homebuyer-Brochure-08.19.2020.pdf.

[8] “First-Time Home Buyer Loans – Conventional, CRA, FHA, HUD, USDA, State Bond and VA Loans.” CRA Home Loan Programs, First Home Advisor, 12 Mar. 2019, firsthomeadvisor.com/home/loans/.