Teaching Your Kids About CDs

Using a Certificate of Deposit to Teach Your Kids About Money

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All parents want their children to succeed, and part of what success looks like is learning to be financially responsible. One way to help your children learn the necessary skills to be financially responsible is to teach them about saving money. Money can be an abstract concept, so using real-life financial situations can be helpful. Capitol Federal® offers a special Blue Bucks Kids' Certificate of Deposit account designed to make learning about money fun. As your child puts money into a CD, they’ll learn about:

The value of saving. Since most CDs are set up with minimum term limits and a penalty for early withdrawal, your child can’t use the money for an impulse purchase. They’ll learn that delaying gratification can lead to greater rewards in the future.

How interest works. The idea that you can make money from money may seem confusing to your child. Watching the value of a CD grow can help your young one see how interest accumulates.

Financial decision making. When a CD matures, your child will have the choice of either withdrawing the money to spend it or reinvesting it to earn more interest.

During the holiday season, a CD can make a great gift for the child or grandchild in your life. When you open a Blue Bucks Kids' Certificate of Deposit or add $100 or more to an existing account between November 27, 2020 and December 24, 2020, you will receive a fun Kid Chef Kit with a Chef Hat like the Pro’s, Blue Bucks Character Apron, Colorful Set of Measuring Spoons, a blue spatula and a Special Edition Blue Bucks Cookbook!

New customers will need to provide copies of the birth certificate and SSN card for the minor on the account. Certificate of Deposit (CD) offer available from November 27, 2020 to December 24, 2020. While supplies last. Limit one gift per account added or opened. Interest compounded daily and paid quarterly. 12-Month fixed rate CD. $100 minimum to open a new Blue Bucks Kids’ CD or $100 minimum deposit to existing Blue Bucks Kids’ CD to receive gift. Only available to be opened in a Capitol Federal branch. Premature withdrawals from Certificates of Deposit shall be subject to a penalty.

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Categories: CapFed® News , Just For Fun , Money Smart Kids , Safety and Security , Smart Spending , Strategies for Saving
Tags: About CapFed , Kansas City , Lawrence , Topeka , Wichita

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