Teach your children well #CUYouthMonth
by: Lindsey Richardson
To kick off National Credit Union Youth Month (April 1-30, 2015), I thought it would be appropriate to start a conversation regarding youth savings programs. Credit unions across the country participate in various types of youth savings programs, including collaborations with K-12 schools to offer financial education programs, or in-school credit unions that offer students basic savings accounts. These programs are intended to teach kids the importance of personal financial management, banking operations, and saving for college. While these programs are a great benefit to the community, there have been some institutions that are hesitant to participate due to uncertainty about legal and regulatory considerations.
[Drum roll please…]
Enter the Interagency Guidance to Encourage Financial Institutions’ Youth Savings Programs and Address Related Frequently Asked Questions, aka your credit union’s guide to incorporating a successful youth savings program. The NCUA, FinCEN, OCC, FDIC, and Fed came together last month to provide this guidance to financial institutions, which addresses common questions such as:
- Are there restrictions on minors opening savings accounts? How old must a person be to open a savings account without a parent or guardian serving as the custodian or co-owner on the account?
- Can a minor with a custodial account be issued an ATM or debit card?