Saving & Budgeting

Different types of savings accounts:

A basic savings account is a low-risk savings account offered by many banks and credit unions
A basic savings account has a low interest rate
These savings accounts are designed for basic money storage and short-term money goals.

PROS

Easy to open, even for teens (usually with a parent)
Often no monthly fee if you meet minimum requirements
ATM and online access
Insured by the FDIC or NCUA

CONS

GOOD FOR

Very low interest rates (usually 0.01% – 0.05%)
Limited withdrawals per month due to federal rules (6/month in many cases)

Beginners starting their first savings account
Emergency funds or general short-term goals

Teen Tip: Choose a bank with no fees and a teen-friendly app. Link your checking and savings accounts so you can transfer with one click.

A mix between a savings account and a checking account — with better interest than a basic savings account, but more access than a HYSA.
You deposit a larger amount, and in return, you earn decent interest and may get a debit card or check-writing privileges.

PROS

CONS

GOOD FOR

Higher interest rates than basic savings (though lower than HYSA)
Often includes limited debit/check access
Secure, FDIC-insured

Requires high minimum balances (often $500–$5,000)
Fees if your balance drops too low
Limited transactions per month

More advanced teen savers with larger savings goals
Family-shared funds (like college or summer program savings)

https://www.nerdwallet.com/article/banking/faq-money-market-account#:~:text=A%20money%20market%20account%20(MMA,withdrawals%20are%20usually%20not%20capped.

https://investor.vanguard.com/investment-products/money-markets#:~:text=What's%20a%20money%20market%20fund,or%20an%20unexpected%20life%20event.

https://www.investopedia.com/how-to-open-a-money-market-account-7378165

Teen Tip: Only consider this if you’ve saved up a lot and want to keep it safe and accessible. Not the best starter account.

https://finance.yahoo.com/personal-finance/banking/article/how-much-money-in-hysa-214435626.html

https://www.cnbc.com/select/pros-and-cons-high-yield-savings-accounts/

https://www.centier.com/resources/articles/article-details/how-does-high-yield-savings-work

A savings account that earns a much higher interest rate, often from online-only banks like Ally, Capital One, SoFi, or Discover.
You store your money in the account, and it earns interest monthly at a much better rate than traditional savings accounts (currently ~4–5% APY).

PROS

Great for long-term saving — your money grows passively
No fees or minimums (in many online banks)
Compounds monthly

CONS

GOOD FOR

May not offer ATM or debit card access
Transfers can take 1–3 days
Requires an online-only setup

Saving for college, a car, or travel
Teens with a long-term mindset

Teen Tip: Ask a parent to help you open a joint account with an online bank. You can still view and manage it on your phone.

Saving Accounts:

https://info.bankofamerica.com/en/student-banking/banking-accounts

https://www.capitalone.com/bank/savings-accounts/kids-savings-account/

https://www.chevronfcu.org/checking-and-savings/mysavings-youth-account

https://www.genisyscu.org/personal/savings/youth-accounts

A savings account designed specifically for minors, usually requiring joint ownership with a parent or guardian. Offered by most major banks.
You get access through mobile or online banking, and parents can monitor activity. These accounts often come with extra financial education tools.

PROS

CONS

GOOD FOR

No monthly fees or minimums
Financial education features
Some offer ATM access with parental controls

Requires high minimum balances (often $500–$5,000)
Fees if your balance drops too low
Limited transactions per month

First-time savers and teens wanting to learn
Short-term goals like a concert, trip, or phone

Teen Tip: Look for banks that let you set goals inside the app (like Capital One’s “MONEY” account).

A type of savings where you agree to leave your money in the account for a set period of time (e.g., 6 months, 1 year, or more) in exchange for a higher interest rate.
You can’t touch the money until the term is over (or else you pay a penalty). The longer the term, the higher the rate.

No access to your money until maturity
Penalty for early withdrawal
Not flexible

PROS

CONS

GOOD FOR

Fixed, often high interest rate (2%–5%)
Encourages saving discipline
FDIC insured (safe)

Long-term saving goals with a set timeline (e.g. saving for college in 1 year)
Teens who tend to overspend and want a lock-in

Learn More:

Teen Tip: Use CDs if you already have emergency money set aside and want to lock in a big goal (ex: $500 saved for a car, trip, or tuition deposit).

Important Terms:

💰 Principal: The original amount of money you put into your savings account.

💸 Interest: Money the bank gives you as a reward for keeping your money there.

🔁 Compound Interest: Interest earned on both the money you save and the interest you already earned. This helps your money grow faster over time.

🏦 FDIC Insurance: A government guarantee that your money is protected (up to $250,000) if your bank fails. Only available at FDIC-insured banks.

📆 Maturity Date: The day a Certificate of Deposit (CD) finishes its term and your money becomes available to withdraw without penalty.

💵 Deposit: Putting money into your account.

📉 Penalty: A fee you pay for breaking certain rules — like withdrawing early from a CD or dropping below a required balance.

🔄 Liquidity: How easily you can turn your savings into cash. A savings account is liquid (easy to access); a CD is less liquid (harder to access).

Budgeting:

What is a budget?

A budget is a plan for your money. It tells you:

How much you earn (income)
How much you spend
How much you can save
If you’re overspending
If you can afford something now
How to balance fun with responsibility

Why you need a budget?

Avoid overspending
Reach savings goals faster
Make smart choices
Feel in control
Build habits that help you as an adult
Avoid getting into debt or borrowing from others
Free up money for things that actually matter to you

Important Terms:

Income: The money you get or earn

Expenses: The money you spend

Fixed Expense: Same every time

Surplus: Extra money left after all expenses

Deficit: When you spend more than you have

Variable Expense: Changes

The 50/30/20 Rule:

% of Income

Example w/ $250

Needs

Wants

Savings/Goals

50%

30%

20%

$125

$75

$50

Teen Tip: If you live at home and don’t have bills, try saving 30–50% instead.

Budgeting Activities & Resources:

Garcia Budgeting.xlsx

Teen_Budget_Tracker.xlsx

Saving & Budgeting

Different types of savings accounts:

PROS

CONS

GOOD FOR

Teen Tip: Choose a bank with no fees and a teen-friendly app. Link your checking and savings accounts so you can transfer with one click.

Important Terms:

Budgeting:

What is a budget?

Why you need a budget?

Important Terms:

The 50/30/20 Rule:

Category

% of Income

Example w/ $250

Needs

Wants

Savings/Goals

50%

30%

20%

$125

$75

$50

Teen Tip: If you live at home and don’t have bills, try saving 30–50% instead.

Budgeting Activities & Resources: