Credit Union Youth Month: Saving for Emergencies

Teaching your child the power of saving money starts with helping them develop valuable habits that can last the rest of their lives. In recognition of Credit Union Youth Month this April, we’ll be giving tips and strategies for how to help your child maximize their savings potential. To get started, let’s talk about how and why to save for emergencies.

Saving for Emergencies

Anything can happen in life, and you never know when you’ll have to rely on your savings to get by. Of course, that’s only possible if you already have savings built up. Whether your child is six years old or 16 years old, it’s never too late to talk with them about being smart with money. Take some time now to teach them the importance of regularly setting money aside for emergencies.

A good rule of thumb for people of all ages is to save enough money to last at least six months. The older you are and the more expenses you have, the larger your six-month savings will need to be. Keep in mind that “expenses” includes both needs and wants. Even if you're focused on being as frugal as possible, most people aren't able to go too long without spending money on wants, like entertainment or treats. This is normal. Rather than ignore it, factor it into your savings plan instead. Also remember that the amount of your monthly expenses may change from time to time, so it's a good idea to check on your emergency savings every so often to make sure you have enough.

Depending on the age of your child, they may have very few (if any) expenses that they’re responsible for on their own. But that won’t last forever. Help them to start saving now so that they can have more for themselves in the future.

The 10% Rule

One popular way of building up savings is the “10% rule.” According to this rule, the first thing you should do after getting paid is set aside at least 10% of your income for savings. That’s one dollar for every 10 earned. The rest can be used to save for miscellaneous items or to spend on yourself. By getting your child used to the 10% rule now, they can turn it into a lifelong habit.

Savings Tools

Youth savings accounts can be a powerful tool when teaching your child the importance of saving. This April, make the most of these limited-time offers from Cyprus Credit Union in honor of Credit Union Youth Month.

• Open a Dollar Dog account (12 years old and under)
  Ideal for children aged 12 and under, Dollar Dog accounts can be used to teach youth how to save and manage money. Plus, we’ll give you $5* to get the account going when you open it in April.
  
  
• Open a Dream Certificate (18 years old and under)

  With flexible terms and the yields of a traditional certificate, a Dream Certificate can help you fast-track your child’s savings. We’ll match your initial deposit up to $25* when you open a Dream Certificate this April for your child aged 18 and under.

Teaching your child the importance of saving could win you a family-fun prize!**

By opening a Dollar Dog account or Dream Certificate during the month of April 2023, you’ll automatically be entered into Cyprus Credit Union’s drawing to win family pass to your choice of the following (10 winners will be selected at random):

• Utah’s Hogle Zoo
• Thanksgiving Point
• Discovery Gateway Children’s Museum
• Utah State Park Pass
• U.S. National Park Pass

Schedule an appointment at your nearest branch or contact us at 801-260-7600 (option 4) to open an account for your child today.

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*Limit one per child. Child must be 18 or younger to qualify for Dream Certificate bonus and 12 or younger to qualify for Dollar Dog bonus.

**Membership and eligibility required. Offer available on new accounts only. Members earn one entry for every qualifying account opened. Odds of winning depend on the number of entries received. 10 winners will be randomly selected. Winners will be notified via telephone by May 31, 2023. Cyprus employees, volunteers, and immediate family members are not eligible. Contest prizes are non-transferrable and may not be substituted. By participating, entrants agree to release, discharge, and hold harmless Cyprus Credit Union from any and all injuries, liability, losses, and damages of any kind resulting from their participation in the contest or their acceptance, possession, use, or misuse of prizes. All taxes on prizes are the sole responsibility of the winners. Prize will be awarded to the parent/guardian connected to the account. Additional terms and conditions may apply. Contest ends 4/30/2023.

Federally insured by NCUA.

Promo code: CUYOUTH23