A member from Club Ignite, Jacob Obloj, recently stopped in at the Parma branch to talk about his journey with FFCCU! While only 13, Jacob has learned the importance of saving and budgeting and has some important insights for our teen Club Ignite members. Here are some key lessons Jacob talked with us about:
Start Your Credit Journey Early
While you may only qualify for a credit card in your name once you are eighteen, there are other ways you could start building credit early. As Jacob has said, your parents can add you as an authorized user. As an authorized user, you can make purchases from your parent’s credit card account, and this credit card account is now available on your credit report. It’s a great way to begin your credit journey. However, before asking your parents to become an authorized user, remember to budget responsibility and demonstrate your maturity by not overspending.
Save for the Future
While you may not believe saving makes a huge difference, Jacob has already saved $3,000 at 13 years old! If you plan on saving for a car or college, this money could have a drastic impact! Remember that you gain compound interest when you place your money in a savings account. Compound interest is known as “interest on interest.” It is the initial interest that slowly accumulates over time.
For example, if you start with $1,000 in your savings account with a 2.0% annual percentage yield (APY) and deposit $50 each month, in 3 years, you’ll have $2,914.22. That’s both from APY and your discipline to deposit $50 each month!
Start Learning about Money Earlier in Life
While Jacob started learning about money at just 5 years old, it’s never too early or too late to enrich your financial literacy. FFCCU is all about helping others increase their financial literacy. Our Sparky’s Kids Club program offers money management activities and prizes for children ages 5 through 12. Find out more about this program today!
If you’re a teen, you can join Club Ignite, our exclusive club for teens that offers a savings account and budgeting tips. In addition to joining programs at FFCCU, adding some financial terms to your vocabulary is another way to increase your knowledge. Start learning basic financial terms such as APY, credit score, and collateral early. To pick up more terms, follow our Instagram page just for teens here.
Keep Your Money Goals in Mind
As Jacob emphasized, save and save! However, saving is more effortless once you have a goal in mind. A Study from Lincoln Financial Group found that Americans that set specific financial goals in 2017 felt 83% better about their futures. Therefore, start planning your goals to feel better prepared for the future.
Find Opportunities to Start Saving for College as a Teen
Like planning early for your future goals, finding ways now to save for college should be your top priority. At FFCCU, we offer Club Ignite members just like Jacob the opportunity to apply for the Ignite My Future Scholarship! This scholarship is for Club Ignite members in grades 9-12. (3) $500 scholarships will be awarded to deserving high school students.
It’s simple to apply! All you need to do is:
- Write a 500–600-word essay on why and how you give back to the community.
- Have a cumulative grade point high school average of 3.0 or above.
- Demonstrate your community involvement through volunteer activities.
To apply today, click here.
Start Learning about Saving Today in Your Teens!
While learning about your finances may be the furthest thing from your mind, it’s important to start taking steps to gain knowledge today. We hope that hearing some tips from Jacob gave you some insight into your own savings journey. To watch the full video of Jacob, click here.