New this month is financial milestone information thanks to our friends at Mid Minnesota Federal Credit Union. Read on to learn how you can save for your child(ren) today!
First Five Years Financial Milestones
1st Birthday
The first year is a whirl wind for every parent, so if you are feeling that way, too, it’s okay! But what a year it has been, full of firsts… first food, first steps, first word, first savings account. Don’t worry if the savings account is NOT open yet. In fact, most parents come into the credit union with a piggy bank or envelope in-hand right after the first birthday. We are here to help and even have a savings account special for kids age 0-17 that pays 3%APY on the first $500 to give you a jump start on saving for the future. Stop by with the piggy bank soon and we’ll add another “first” to your child’s history and start their money earning interest for the future!
2nd Birthday
As your toddler is expanding their vocabulary, we thought it would be a great time to review a few financial terms you may be coming across related to saving for their future. Our expert staff are also parents and grandparents who are available to answer any questions you may have.
Interest: The amount of money accrued (added to an account) or the cost (fees or charges) associated with the use of money.
Dividend: Interest earned on any asset account (such as savings, a term share certificate (TSC) or an investment) paid by the financial institution to the account holder.
Annual percentage yield (APY): A percentage reflecting the total amount of interest earned on a deposit account. APY is based on the interest rate and the frequency of compounding (how often interest is added to the account principal) over 1 year.
Interest-bearing account: An account that earns interest over a specific period of time. Commonly, savings accounts are interest bearing. Some checking accounts are interest bearing.
529: A 529 account is a savings account for college savings. Contributions are typically made on a post-tax basis, although some states do offer tax breaks for state taxes on such pre-tax contributions. Interest and dividends accrue tax free until the funds are withdrawn.
Trust: A person who holds property for the benefit of someone else.
3rd Birthday
Curiosity is at a new level now with your child and this is a great time to help them learn how to care for money, the different coins and how it can all add up. Mid Minnesota is here to help! Visit one of our offices and request a savings jar that your child can have for their very own.
4th Birthday
Four already, time sure seems to fly! Before you know it they will be asking for their own phone, brand name shoes, and car. We can help you be ready for that day with a Fast Forward Certificate. You can start with as little as $10 and a commitment to deposit at least $10 per month for the remainder of the term while earning higher dividends than most savings accounts.
5th Birthday
School is right around the corner for your not so little one. What do they imagine themselves being when they are all grown up? Better question is: what type of training or education will they need to achieve that dream? If you have not considered a 529 plan to save for their future education now is a great time to learn more. A 529 plan is a tax-advantaged savings plan to save for future education costs that are sponsored by states, state agencies, or educational institutions and are authorized by Section 529 of the Internal Revenue Code. There are two types of 529 plans: prepaid tuition plans and education savings plans. We encourage you to take the time now as you are starting your journey into education to see if this is the right savings option for your family. Give us call today and we can help you consider all your options.
APY=Annual Percentage Yield. YES balances up to $500 receive an APY of 3.00%APY and balances over $500 earn 0.05%APY on the portion of balance over $500. APY = Annual Percentage Yield. APY will range .05 – 3.00%APY APY is accurate as of 12/1/2022. Dividends will be credited on the last calendar day of each month to the YES account. No minimum deposit is required to open a YES account. Limit one account per social security number. Parent or guardian is required if under 18. Fast Forward Certificate requires you make minimum $10 monthly contribution to avoid a $10 penalty. Certain restrictions apply.
MMFCU can be found on the web here!
They have locations in Baxter, Brainerd, Little Falls, and many of our surrounding communities.
Have specific questions? Give them a call at (218) 829-0371.
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