Have you ever wondered how your financial journey might look if you’d started saving at a younger age? Understanding the importance of saving as a teenager — or even earlier — can go a long way toward building confidence and creating habits that last. When that basic financial knowledge is combined with consistent discipline before reaching adulthood, young people can be set on a path toward long-term financial freedom.

April is Financial Literacy Month, a time dedicated to highlighting the value of financial education and the role youth accounts play in helping young people build strong money habits. There are a lot of important hands-on financial lessons that can be taught by having a savings or checking account by age 18. The earlier someone begins learning those lessons and how to manage money, the better prepared they are to make informed decisions as an adult.

The Importance of Youth Accounts

Youth accounts work much like traditional checking or savings accounts, but they’re opened in the minor’s name with a parent or guardian as a joint owner. This structure gives young people hands-on experience while still allowing a responsible adult to provide guidance. It’s a safe, supportive way to help them learn essential financial lessons, including: 1. Financial Literacy Skills

Opening a youth account is an excellent way to introduce children and teens to foundational financial concepts. With their own account, these early experiences help them understand how money flows in and out, why saving matters, and how to make thoughtful financial choices. Over time, these skills empower them to take control of their financial future and even share what they’ve learned with friends or family members.

2. Financial Responsibility

Having money in a savings or checking account allows young people to see the direct impact of their decisions. When they save consistently, they watch their balance grow. When they spend it impulsively, they see how quickly money can disappear. This real- world cause-and-effect teaches responsibility in a way that conversations alone often can’t.

Setting financial goals, like saving for a first car, a school trip, or college, also helps build discipline. Reaching those goals gives them a sense of accomplishment and reinforces the idea that patience and planning pay off. These early wins can boost their confidence and lay the groundwork for responsible financial behavior throughout adulthood.

3. Financial Independence

Youth accounts also provide a safe environment for young people to experience a taste of independence. When they get their first job and set up a direct deposit, they begin managing their own earnings. They learn how to monitor their balance, make spending decisions, and plan ahead. At the same time, parents or guardians can step in if needed, offering guidance and guardrails. It’s a low-risk way for them to learn important lessons while still having support close by.

This “trial run” of adult financial life helps them build confidence before they’re fully responsible for managing their own money. By the time they reach adulthood, they’re more prepared to handle bills, credit, and long-term financial planning.

Chat with a Professional

Opening a youth account can be one of the most meaningful steps you take to support your loved ones’ future. It gives them the tools, experience, and confidence they need to make smart financial decisions for years to come.

Your financial institution is a great resource if you need more help setting up a youth account or teaching your teen about financial basics. They can also help you with your own financial plan — at Ascend, our members can meet with certified financial counselors for free. Check with your financial institution to see what they offer and set a good example by meeting with a professional.

It’s never too early to start a financial journey. Talk with your loved one about the benefits of setting up a youth account and help put them on a path to success.

Ascend is federally insured by NCUA. Jason Powers is the Ascend Chief Growth Officer.