3 Steps to Jumpstart Your Child’s Savings

Setting up your child’s financial future is easy with a youth savings account

April 1, 2024

Raising a child can be challenging, but setting them up for a sound financial future doesn’t have to be. Taking these three steps early on can put your child on the right track from the beginning:

1. Open an account for your child

Opening a separate account for your child is the first step toward jumpstarting their savings. Having a specific place to deposit money that family or friends give for birthdays or other special occasions will help keep it separate from your own finances. As your child gets older, it will also provide them with a way to track their own savings and see how their money grows.

This article is sponsored by PSECU.

During the early years with your child, it’s likely that you’ve had to make what feels like a million decisions, but choosing a savings account for your child can be an easy one. Look for an account that features perks that will help your child’s savings grow. PSECU offers a special youth savings rate for children aged 18 and under: they qualify for a 4.00% APY* on account balances up to $500. Make sure you choose a financial institution that you trust, and just like any other account, avoid those that come with a lot of fees or high minimum balance requirements. You want to make sure that every penny possible is growing for your child.

2. Make saving easy

Once your child’s account is open, complete any paperwork that will make saving for your child even easier. Take advantage of linking your own account with your child’s so that you can deposit money directly into their savings.

If you’re able to take it a step further, consider setting up an automatic transfer from your account to your child’s. Add saving for your child to your list of monthly bills and have the money move between accounts each payday. If you feel like you don’t have much to give, don’t worry. Every little bit counts and will add up in the end.

3. Swap “stuff" for saving

Your family and friends may want to shower your little one with toys, clothes, and other goodies to show their love. While there’s nothing wrong with these kind and generous gestures, even the most appreciative person may find themselves buried in this “stuff.” Once you set up your child’s account, let family and friends know that you’re working to build a solid financial future for your child and that it would be very meaningful to you if they’d contribute to their savings instead.

If that’s not a conversation you’re comfortable having, let your family and friends enjoy shopping for your little one and make the swap yourself. If you know your child will get plenty of gifts on birthdays or holidays, consider making a deposit into their account rather than adding to the pile. They may grow out of the clothes and the toys, but their savings will continue to build.

Get up to $25 when you get started!

If you’re ready to add some color to your child’s future, there’s no better time than now. When you open a PSECU youth savings account, PSECU will match your first deposit up to $25** when you meet promo requirements. To earn the bonus, here’s how it’ll happen:

  1. Open a custodial account or Regular youth account with a youth between April 1, 2024, and April 30, 2024, using promo code: Youth
  2. PSECU will match the initial deposit made to the Regular savings share up to $25 within 45 days after the requirements are satisfied.

NOTE: This does not include the initial $5 funding to open the account. The match will be made based on only the first deposit after account opening to the Regular savings share. Limit one (1) new youth account per child, per tax identification number used to open a new PSECU youth account.

Learn more about PSECU’s youth savings options or apply for an account by visiting

*APY denotes Annual Percentage Yield. To be eligible for the Youth Savings rate, the primary account owner must be under 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 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.  

** From 4.1.24 to 4.30.24, PSECU is running a new youth account bonus. To receive the bonus, a deposit, match up to $25, members must open a new youth account with promotional code Youth and satisfy the requirements listed below. “Youth account” is defined as an account where the adult and youth are joint owners on an account or a custodial account opened by an adult for the youth.  All youth accounts must be opened and funded with promotional code Youth by 04.30.2024 at 11:59 pm to be eligible. PSECU will deposit member incentive bonus into the Regular savings share within 45 days after requirements are satisfied. PSECU will match only the first deposit made into the Regular savings share up to $25 after account opening (does not include initial $5 deposit at account opening). Deposits to other shares such as checking or additional savings shares will not qualify for this bonus offer. Promotion open to U.S. Residents who are 18 years of age or older at the time the adult opens either a joint account with a youth or a custodial account for a youth. Limit one (1) new youth account bonus per child, per tax identification number used to open a new PSECU youth account. Joint owners listed on accounts are not eligible to be rewarded for this bonus. You will not be eligible for the youth account bonus offer if you are a current PSECU member who is a joint owner with the youth or already has a custodial account for the youth, have closed a youth account within the past 12 months, or have received any new member incentive bonus for a youth account within the past 12 months. Members who open accounts and/or loans by fraudulent, suspicious, or illegal means, including but not limited to providing PSECU with fraudulent or fabricated information, are not eligible to participate in this bonus offer. PSECU may adjust the deposited bonus or remove the deposited bonus at any time if PSECU suspects accounts and/or loans were opened by fraudulent, suspicious, or illegal means, including but not limited to providing PSECU with fraudulent or fabricated information. $5 is required to open and maintain a Regular share account. This $5 share deposit is also required to be eligible to receive the bonus, and the member must be in good standing, at the time of payout, as defined by PSECU's Bylaws Article II, Section 1. A $5 minimum share purchase will be made on behalf of the new member by PSECU. If the member account is closed within the first year of membership, the initial $5 share will be retained by PSECU. The Annual Percentage Yield on PSECU's Youth Savings is 4.00% on balances of $0.01 to $500.00 and 0.50% on balances of $501.00 and greater. This variable rate is current as of 02.01.2023 and may change. Withdrawals and fees may reduce earnings on the account. If you have any questions, please seek the advice of a qualified tax professional. All decisions of PSECU regarding this promotion are final. PSECU may terminate or change the terms and conditions of this promotion without notice. Subject to all applicable federal, state, and local laws and regulations.