Raising Money-Smart Kids

Jan 28, 2025

How many of you have talked to your children about finances? If you haven’t yet, you’re not alone. A surprising 41% of parents admit they’ve never discussed money with their kids. According to a Greenlight survey, this communication gap contributes to the fact that 3 out of 4 teens lack confidence in their financial knowledge.

What is Financial Literacy?

Financial literacy is understanding and using financial skills and concepts effectively. It encompasses critical skills such as:

Opening a bank account
Using debit and credit cards responsibly
Basic budgeting
Managing and paying off debt

Why Financial Literacy Matters.

Financial literacy equips individuals with the tools to make informed decisions and achieve financial wellness. Here are some key benefits:

Fosters a better understanding of real-world financial decisions.
Helps manage money effectively and establish healthy spending and budgeting habits.
Reduces vulnerability to financial fraud.
Supports life goals like saving for education, using debt responsibly, and planning for retirement.

Despite its importance, only seven U.S. states currently mandate at least one semester of financial education in schools. That’s why financial institutions like IAA Credit Union step in to bridge the gap through initiatives like Money Smart Week, National Credit Union Youth Month, and American Saves.

How IAA Credit Union Supports Financial Literacy.

Since 1951, IAA Credit Union has served the Illinois Farm Bureau Family of Companies and their employees. Beyond traditional banking services, we’re committed to financial education, offering youth-focused programs tailored to every stage of development:

Kids Club (Ages 0-12)

The Kids Club is designed as an introductory savings account, helping children learn the basics of saving for short- and long-term goals. Benefits include:

Earning “Penny Bucks” to exchange for toys in our lobby.
Access to the Greenlight app, a trusted family money management tool.
Invitation to attend FREE local Kids Club Events throughout the year.

Dollars & Sense Club (Ages 13-17)

The Dollars & Sense Club builds on the foundation of the Kids Club, offering

Savings rollovers from Kids Club accounts.
First checking accounts with no minimum balance or monthly fees.
Remote deposit capabilities and online banking.
Access to over 35,000 ATMs with your debit card.
Youth CDs with as little as $500 to start.
Continued access to the Greenlight app, fostering independence with parental supervision.

Elite Club (Ages 18-23)

The Elite Club prepares young adults to manage their finances independently while still offering support:

Savings and checking account rollovers from Dollars & Sense Club.
Access to remote deposits, online banking, and no-fee checking.
Exclusive perks such as getting the lowest possible rate on first loans and access to a secured Visa credit card.
GreenPath resources for free financial education, including budgeting assistance, credit reviews, and debt management plans.

What is Greenlight?

Greenlight is the loved and trusted financial education app and debit card for kids and teens that allows parents to instantly send their kids money, set up chores and allowances, create savings goals, and more. As an IAA Credit Union member, you get the Select Plan for free (a $70 value) when you register via our unique link and add your IAA Credit Union checking account as a funding source. Parents can add up to 5 kids, each getting their own debit card. Once registration is complete, debit cards will be shipped for each child, ready for use upon activation.

Practical Tips for Teaching Kids About Money

Lead by Example: Share your budget and financial decisions in age-appropriate ways.
Encourage Open Conversations: Talk about money regularly and celebrate milestones.
Reinforce Good Habits: Help kids practice saving and spending wisely.
Embrace Mistakes: Allow children to learn from small financial missteps now to avoid larger mistakes later.

Ready to Join?

IAA Credit Union’s Youth Program sets your child on the path to financial success from ages 0-23, culminating in a Platinum-Level Membership. Let’s empower the next generation with the knowledge and skills they need to thrive financially.

Become a member today! Together, we can build a future of financially confident and capable young adults.

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