Teenagers are the near-future members of credit unions; we want to offer financial advice and resources that support them.
Pivotal moments like opening a savings account, starting a first job or receiving a first paycheque open the door to financial responsibility and independence for youth. In a digital age where teens are bombarded by personalized adverts on how they should be spending their money, Celero wants to provide credit unions with resources that aid and engage the younger generation in financial literacy and success.
01./ Understanding Needs vs. Wants
Teens in 2021 have grown up emersed in technology that offered them instant gratification. Their ability to discern between necessities and non-essential items must be discussed and put into practice. Amidst the era of online shopping and targeted promotions for the brands they love most, it is harder than ever to have self-control.
02./ Budgeting and Tracking Expenses
When a teen begins to purchase items with their own money, especially with a payment card, it is important that they can see what purchases are consuming their income. Budgeting can seem tedious or daunting, but traditional methods are in now in competition with innovative technology. Expenses tracking will help them recognize what items they need to save for, and what purchases they need to eliminate.
03./ Saving and Investing
As teens begin to generate an income, learning how to save and invest is their next step. To keep up with Canada’s 4.4% annual inflation rate, and to reach financial goals like retirement, teens need to begin investing a percentage of their savings. The competence required to invest is intimidating, especially to teenagers. By offering investing expertise and services, credit unions can start creating positive money habits with their young members that will have a lasting impact.
04./ Understanding Taxes
After being hired at their first job, teenagers may be confused by the lower-than-anticipated number on their paycheque if they do not understand gross pay versus net pay. Along with tax deductions, teenagers should learn about tax refunds. Even if a working teenager is not required to file a tax return, they should be informed of the advantages, like; tax refunds, claiming tuition credits, and building Registered Retirement Savings Plan (RRSP) room.
05./ Responsibility and Security
Growing up surrounded by technology, teens are very comfortable with the internet, making them susceptible to digital fraud. Data breaches that cause spam emails, leaked passwords, and unauthorized logins are not a shock or rarity to teenagers. But when they gain access to a bank account, personal finances, and online shopping, cybercriminal activity becomes increasingly dangerous. Teaching the importance of strong passwords, trusted websites, and up-to-date antivirus can protect teens’ banking security.
The digital savvy nature of today’s youth is ground-breaking and will increase the demand for turnkey fintech solutions within credit unions. Please contact us or talk to your Celero Account Executive to learn more.
Editors note: This blog was originally published in December 2021 and has been updated for accuracy.