Every April, credit unions across the country celebrate Credit Union Youth Month — a time dedicated to helping young people discover the power of saving and smart money habits. Here at Georgia Heritage Federal Credit Union, we believe that financial literacy for youth is one of the most valuable tools to set them up for success. So, let’s start with the basics.
What Is a Credit Union — and How Is It Different From a Bank?
Before we dive into savings and checking accounts, it helps to understand what makes Georgia Heritage FCU a little different from a traditional bank. A credit union is a not-for-profit financial institution that is owned and operated by its members: You! When you join GHFCU, you’re actually a part-owner of the credit union.
Because credit unions are not-for-profit, any earnings are returned to members in the form of better interest rates, lower fees, and community-focused programs — like our youth accounts and financial literacy resources — designed specifically to help young people get started on the right financial foot.
Key Financial Terms Every Young Person Should Know
Building strong financial literacy skills starts with knowing the vocabulary. Here are the most important terms to understand as you begin your money journey:
Savings Account – A savings account is a secure place to keep money you don’t plan to spend right away. The big bonus? The credit union pays you a small reward — called interest (or dividends at a credit union) — just for keeping your money there. The longer your money sits, the more it grows. Think of it as planting a financial seed!
Checking Account – A checking account is designed for everyday spending. You can use it to pay for things with a debit card, write checks, or make online payments. Unlike a savings account, it’s easy to access your money at any time. Keeping track of what goes in (deposits) and what comes out (withdrawals) is key to avoiding overdrafts.
Debit Card – A debit card looks like a credit card but works very differently. When you use a debit card, money comes directly out of your checking account — only what’s already yours. It’s a great tool for learning how to manage spending without going into debt.
Deposit & Withdrawal – A deposit is money you put into your account — like birthday money or a paycheck from a job. A withdrawal is money you take out. Understanding the difference and tracking both helps you always know exactly how much you have available.
Interest / Dividends Interest (called dividends at a credit union) is money earned on the balance in your savings account. Credit unions pay dividends to members because you are part-owner of the institution. Even small amounts add up over time thanks to a powerful concept called compound interest. You can earn interest on your interest!
Account Balance – Your account balance is the total amount of money currently in your account. Checking your balance regularly — through our mobile app, online banking, or at an ATM — is one of the simplest and most important money habits you can build.
Available Balance – Your available balance is the total amount of money in your account that you can use for purchases and withdrawals, as it excludes pending transactions and check holds from your account balance. However, the available balance will not show checks that haven’t been cashed or deposits which haven’t posted.
Budget – A budget is a plan for your money. It helps you decide in advance how much you want to save, how much you can spend, and how much to set aside for specific goals — like a new game, a car, or college. A simple budget can be as easy as three categories: Save, Spend, Give.
ATM (Automated Teller Machine) – An ATM is a machine that lets you withdraw cash, check your balance, or make deposits without having to go into a GHFCU Branch. Georgia Heritage FCU members have access to the MoneyPass® network, offering thousands of fee-free ATMs to our members nationwide.
Saving vs. Spending: Finding the Right Balance
One of the most important financial skills is learning to balance saving and spending. It can be tempting to spend every dollar you receive, but building a savings habit early makes a huge difference later in life.
A popular method many financial literacy classes and educators recommend is the 50/30/20 rule (adapted for young people): use roughly 50% of your money on things you need, 30% on things you want, and save at least 20%. You don’t have to be perfect — the goal is awareness and intention.
Even more simply: before you buy something, ask yourself, “Do I need this, or do I just want it right now?” That single question builds financial discipline over time.
Why Starting Early Matters
Both healthy and unhealthy financial habits tend to form early and stick around. Research consistently shows that young people who have access to financial literacy resources and learn to save, budget, and understand banking concepts are better prepared to handle adult financial responsibilities.
The earlier you start, the more time your money has to grow. Even saving $10 a month starting at age 12 can add up to hundreds of dollars by the time you’re ready for college, especially with dividends!
How to Get Started: 4 Simple Steps
- Set a savings goal — Having a specific goal makes it much easier to stay motivated and track your progress.
- Open your account — Head to any Georgia Heritage FCU branch with a parent or guardian, bring your Social Security card, and open a Kidz Club or Freedom Club account for as little as $5.
- Make your first deposit and track it — Deposit your opening amount and download our mobile app to keep an eye on your balance. Seeing your balance grow is genuinely exciting!
- Make saving a habit — Set a personal rule, like adding a portion of every gift, allowance, or paycheck to your savings account before you spend anything. Consistency is the secret.
Looking for more financial literacy resources to explore with your child? Check out our financial education podcast episodes, or let your Kidz Club member play World of Cents — a free, interactive financial literacy program from the National Credit Union Administration.
Georgia Heritage FCU Youth Accounts
At Georgia Heritage FCU, we believe every child deserves access to the tools and knowledge that set them up for lifelong financial success. That’s why Credit Union Youth Month is something we celebrate every April — and champion every day of the year.
We offer two specially designed accounts to help young members start their financial journey with confidence:
- Kidz Club (ages 12 & under): A savings account with no monthly fees, dividends, and a FREE welcome gift when you open your account. $5 opening deposit.
- Freedom Club (ages 13–17): Everything in Kidz Club, plus the option to add a checking account and debit card — with built-in safeguards like no Courtesy Pay and a $500 daily debit limit for peace of mind. $25 opening deposit.
Accounts do not have a monthly service charge but require an opening deposit and an eligible adult joint owner. You can access your account anytime via our mobile app, remote check deposit, and do transactions within the MoneyPass® ATM network.
Ready to take the first step toward a lifetime of smart money habits for your child? Open a Kidz Club or Freedom Club account today and receive a FREE welcome gift! Contact us online or call (912) 236-4400 to get started.
