Welcome to the world of parenthood!  Whether this is your first or third child, or even a grandchild, this is an exciting time for your entire family.  Pacific Service Credit Union is ready to help. Well, maybe not with the 4 a.m. feedings, but with the financial security you’ll surely want for the newest member of your family.

 

After all, having a child brings about a lifetime of financial concerns and responsibilities. There are immediate financial needs, as well as future expenses such as college, a new home and yes, even wedding expenses one day. We can provide the accounts and resources needed to make raising a family more affordable.

 

Saving for baby

To prepare for the new addition to your family, begin saving before your child is born. Remember, you have nine months to build a little nest egg. Consider putting extra money in a Pacific Service Credit Union savings account or open a certificate account to earn a higher return. The easiest way to start a savings program is to setup automatic deposits using BranchLine.  Or, setup an automatic payments through direct deposit.

 

Planning for baby

This is an important time for planning.  Consider preparing a will and setting up a living trust account.  A living trust allows you to direct how your assets will pass to your heirs.  One of the key benefits to a living trust is that the trust assets may not be subject to probate - potentially saving thousands of dollars.  Pacific Service Credit Union can be your custodian for your living trust account, please call for details.

 

Saving for college

It’s never too early to start saving for a child’s college education. Although college may seem a long way off, the earlier you start saving for college the better. There are a number of ways to save for a child's education. With our Education Savings program, you can save for education expenses on a tax-favored basis with Savings, Money Market or Certificate options. Visit our rates page for today's rates.

 

Baby’s first account

Once your child is born, apply for a Social Security number and open a savings account (ages 0-11). It’s a convenient way to transfer money and build up a savings account for future expenses. As your child grows, we’ll even provide them with fun and educational lessons in saving money. We’ll remember their birthday and give them $5 when they deposit their birthday money.  With our low $100 minimum deposit for a certificate account, even our youngest savers can earn higher rates.

 

Gift to Minor
We can establish a custodial account which allows you to gift assets to a minor during your lifetime.  You can give up to $11,000 per year without having to pay federal gift tax.  Other adults may also contribute to the account, as much as $11,000 per person per year free of federal gift tax.  A custodian must be appointed to the account for a minor.  All withdrawals must be for the benefit of the child until after the child reaches legal age.  Upon reaching legal age, the minor gains control of the account.  Withdrawals from the account can be used for any purpose.

 

Attention Grandparents! Give the gift of financial security. By opening a savings account for your grandchild, not only will they have a safe place to save money, they’ll have access to valuable resources for financial education. It’s the first step toward learning financial responsibility. Opening an account is easy, and you can transfer money to your grandchild’s account for holidays, birthdays or other special occasions.

 

 

Related Articles

 

Toddler to teenager money lessons

Parents teach financial lessons

Make investing a part of child’s financial education

Parents’ guide to allowances

 

 

Helpful Links

 

Family Medical Leave Act

Medicare

An Introduction to 529 Plans

American Bar Association Estate Planning

Nolo Legal Planning

 

Members must have their trust agreements established before setting up a trust account.  Pacific Service CU cannot give members financial, tax or legal advice regarding Living Trust Accounts, Gift to Minor Accounts, or Education IRAs.  Please consult a tax advisor or attorney for more information about these accounts and to determine if any of these accounts are appropriate for you.  Stated contribution limits are for 2008 tax year and may change for future tax years.