Teaching children about money management skills from a young age has numerous benefits for their future financial literacy and stability. It helps them develop healthy attitudes towards money, enables them to make informed decisions, and fosters responsible spending habits. This is all essential as they enter a future where costs for college is only going up. In this blog post, we will explore the reasons why teaching kids about money at a young age is essential. We will also provide links to a banks/credit unions listed by state that will give kids free money for getting good grades.

Rewarding good grades with free money gives parents the opportunity to teach financial literacy while ensuring their kids are striving for success in school. The fact that these banks will fund this life lesson is an even greater bonus for parents!

The Benefits of Teaching Kids About Money at a Young Age

Reason #1: Lays Foundation for Financial Literacy

Teaching children about money at a young age lays the foundation for financial literacy. By introducing basic concepts such as saving, budgeting, and spending, children learn how to manage their finances effectively. This knowledge builds upon itself over time, allowing them to understand more complex financial topics like investing, credit, and debt management. A strong financial foundation gained during childhood sets the stage for a lifetime of smart monetary decision-making.

Reason #2: Encourages Responsible Spending Habits

Children who learn about money management early on tend to develop responsible spending habits. They understand the value of money and the importance of making wise purchasing choices. When kids have a clear comprehension of prices and the impact of impulse buying, they become less likely to engage in unnecessary spending. Parents can reinforce this habit by providing opportunities for children to practice budgeting, such as allocating allowance or earnings from odd jobs toward specific savings goals. Having a bank account where kids can track this online or through their monthly statements will give them a visual of their financial decisions.

Reason #3: Fosters Entrepreneurial Spirit

Introducing children to money management concepts can also foster an entrepreneurial spirit. Kids who grasp financial basics often feel empowered to start small businesses, like pet-sitting, lawn mowing, or crafting ventures. These experiences help build vital life skills, including marketing, customer service, and accounting. Nurturing entrepreneurship at a young age encourages innovation, creativity, and self-reliance—essential qualities for success in adulthood.

Reason #4: Promotes Goal Setting & Achievement

Teaching children about money instills the importance of setting and achieving financial goals. By helping kids create savings plans for short-term objectives (e.g., toys or trips) and long-term aspirations (e.g., cars or college funds), parents can impart valuable lessons about perseverance and delayed gratification. As children work toward their targets, they experience a sense of accomplishment, which boosts motivation and confidence.

Reason #5: Instils Valuable Life Skills

Beyond financial literacy, teaching children about money touches on various other significant life skills. For example, discussions around money management often involve topics like negotiation, problem-solving, and decision-making. Children who engage with these subjects early on develop essential tools for navigating everyday challenges successfully. Additionally, managing finances requires organizational abilities; thus, introducing children to money management techniques can improve their overall organizational skills.

Reason #6: Prevents Financial Struggles Later in Life

One crucial reason to educate children about money is to prevent financial struggles later in life. According to a study conducted by the National Endowment for Financial Education, individuals who received formal financial education were less likely to encounter financial difficulties, such as debt or bankruptcy. By equipping children with fundamental money management expertise, parents can reduce the likelihood of their offspring facing monetary hardships down the line.

Banks that Give Money for Good Grades

One great way that parents can help introduce these concepts to their kids is by getting their child a bank account. Once the child has saved enough money to open an account, there are great banks throughout the country that will help grow the account by giving money for good grades. This will give kids further incentive to do well in school as the “free money” from the banks will help get them closer to the short- or long-term spending goals.

There are various programs and initiatives offered by different banks, credit unions, and organizations that aim to encourage students to work hard and achieve academic success.

If you do not see an option for your state, reach out to a local bank/credit union as a lot of them have affiliate like programs with other regional banks/credit unions. Also, you may be eligible to join a credit union or bank based in another state, but please reach out to them to find out eligibility of joining and the program you are interested in.

Money For Good Grades Banks Listed by State

Alabama

America’s First Federal Credit Union (AmFirst) – “Our Honor Dollars program rewards small students for big grades. Bring your child’s most recent report card with all A’s and B’s to any AmFirst branch and we will make a $5 deposit into their Kids First Club account.”

Heritage South Credit Union – “$2 for each A and $1 for each B, academic classes only. You must bring your report card to one of our branches or student branches to be scanned into your account for verification. For younger students, we will also deposit money for other grade scales (i.e. E, S).”

TVA Community Credit Union – “Your child can earn the following for good grades: $5 for all A’s on their report card $2 for A’s & B’s.”

AOD Federal Credit Union – “Members may earn $2.00 for every “A” grade on a report card, $1.00 for every “B” grade on a report card and $0.50 for every “C” grade on a report card. Report card rewards can only be redeemed in person at a branch during normal business hours. Report Cards will be accepted for the most recent grading period only. Progress reports not eligible. The credit union will accept report cards issued by public or private schools. Home-schooled students must present a copy of their report card submitted to a Board of Education.”

Alaska

Arizona

First Credit Union – Great Grades Rewards Program – “Offer valid for First Credit Union members 24 years & younger who are enrolled in school. Receive $5 per A or equivalent on report card. Earn up to $25 per semester and $50 per year. $10.00 bonus opportunity for GPA of 3.25 (not to exceed $50.00 cap per year).”

Sunflower Bank and First National – Bring in report cards to the local branch to enter a drawing for a monetary prize.

Tucson Old Pueblo Credit Union – Earn “Top Dollars” for presenting you report card and each “A” or “B” you get. “Top Dollars” can be redeemed for prizes.

Arkansas

California

California Kids Investment and Development Savings Program (CalKIDS) – Not a bank offering, but a state funded program to give kids money (up to $1,500) to start a college savings account. Focused on low-income public school students, this program can help kids get started in saving money for post high school education.

Colorado

Alpine Bank – “Alpine Bank wants to reward your child’s good grades! Twice each year, we randomly draw from submitted report cards from kids in grades K-12. Your child could earn up to $50 cash: We pay $10 for As, 4s or Es; $5 for Bs, 3s or Ss for five main subjects.”

Sunflower Bank and First National – Bring in report cards to the local branch to enter a drawing for a monetary prize.

Connecticut

Delaware

Dover Federal Credit Union – Youth program offers a bingo type game that gives stickers for good grades (along with other banking activity). Once you fill the card, you can redeem at the branch for a “reward”.

Florida

Georgia

RobinsFinancial Credit Union – “Twice a year (January & July), Robins Financial awards three students with $500 in cash for maintaining good grades during a semester. There will be 3 winners – 1 at the middle school level, 1 at the high school level, and 1 at the college level. You must have a 3.0 GPA and be a member of Robins Financial Credit Union to be eligible. If you are selected you will be required to supply a copy of your grades for verification.”

Hawaii

Maui County Federal Credit Union – “Rewards for good grades: $1 per ME or A up to $5 per quarter, deposited into their account. (Report cards will be accepted for the most recent grading period, within one month of the report card date. Progress reports are not eligible).”

Idaho

Zions Bank – “Hardworking middle school, junior high, and high school students (ages 12 to 18) in Utah and Idaho are paid up to $1 per “A” on their 2022-2023 report cards. (Sorry, “A-” grades aren’t eligible.) They’re also entered for a chance to win scholarship savings accounts. We give away 36 awards of $500 each and two $1,500 accounts each school year.”

Idaho Central Credit Union – Youth accounts offer a reward for grades, but it does not detail the amount on the website. Contact the Credit Union for more information.

Illinois

Liberty Bank – “Report cards with an “A” or equivalent will be valid one month from the date of issuance. An official report card is required; progress reports of any type do not qualify. Limit of one $5 credit per report card.”

United Community Bank – “For each A (or equivalent grade) you have earned in five primary subjects you will receive $1 deposited into your Minor Savings account. That’s up to $5 each quarter and up to $20 each school year.”

First Community Credit Union – “Rising STARS accounts are for members birth through age 12. Rising STARS receive $1 for each ‘A’ (or equivalent) on their report card in the approved subjects. Report card rewards program begins with kindergarten report card.”

First National Bank and Trust – Earn $1 for each A and up to $5 per report card.

Bank of Washington – “Report card must be presented within one month of the current quarter end. $10 for one report card, not per grade, one time only per calendar year.”

Indiana

Crane Credit Union – “Each student that brings in their report card at the end of the grading semester will be rewarded for good grades. All A’s will receive a $4.00 deposit. Grades are based on semester averages and students up to the high school level are eligible.”

Iowa

Kansas

Sunflower Bank and First National – Bring in report cards to the local branch to enter a drawing for a monetary prize.

Kentucky

First Southern National Bank – “First Southern rewards students by depositing $1.00 into a First Southern Statement Savings account for every “A” made on a report card, up to $10 per grading period.”

Citizens National Bank – “Bring your student into the bank at the end of each grading period so he/she can be paid $1 for every A on their report card!” $10 Maximum reward per grading period.

Louisiana

Pelican State Credit Union – “Get paid up to $5 per A on semester-end report cards”

Maine

Maryland

Cedar Point Federal Credit Union – “For every “A” the student receives in Reading, Writing, Math, Science, Social Studies, or other Fundamental Requirements, Cedar Point will deposit $1.00 in the student’s account! There is a maximum of $5.00 deposited per report period.”

Massachusetts

North Brookfield Savings Bank – “Students who bank with North Brookfield Savings Bank have the chance to earn money for their hard work in school. The cash for good grades incentive is a maximum of $20.00 per school year, with a maximum of $5 per quarter. To receive cash for good grades, report cards showing a GPA of at least 3.0 or equivalent must be submitted to a North Brookfield Savings Bank branch location. The incentive will be deposited into the student’s North Brookfield Savings Bank account.”

Michigan

Minnesota

SouthPoint Financial Credit Union – Earn $1 for every A your child receives on their report card.

Mississippi

Missouri

Belgrade State Bank – “Just show us your report card and receive a $2 credit for each “A” grade earned per semester1 (maximum of $16 per semester)!”

Bank of Washington – “Report card must be presented within one month of the current quarter end. $10 for one report card, not per grade, one time only per calendar year.”

Montana

Nebraska

Nevada

New Hampshire

New Jersey

Kearny Bank – “$1 will be deposited into a Kid’s Club savings account for each “A” the student receives each marking period. Maximum $15 per marking period to only one qualifying Kid‘s Club account per child. Equivalent of “A” are as follows: 93% and higher, “E” for Exceeds Expectations.”

New Mexico

Sunflower Bank and First National – Bring in report cards to the local branch to enter a drawing for a monetary prize.

New York

Cap Com Federal Credit Union – “Earn $30 for your report card! Submit your end-of-year report card between June 1 and July 31 of the same school year. Valid for students in grades K-12 who have a Youth Account.”

DFCU – “Our Great Grades program offers students in grades K-12 the opportunity to submit their report card, each quarter or trimester, to receive a cash deposit to celebrate their Great Grades. Students will receive $1 for each grade they receive of an 85% or higher, up to $5 per quarter/trimester.”

Ulster Savings – “As a reward for having good grades, students enrolled in the Minor Savings Account or Smart Start Checking can receive a $2 deposit if they have a B average or better.”

North Carolina

North Dakota

Ohio

Oklahoma

Security National Bank of Enid – This is another bank that collect report cards and does a drawing for award. “Four cards will be drawn from the hopper. All students entering their grades will receive a coupon for a frosted drink or milkshake from Chick Fil A of Enid.”

Oregon

Pennsylvania

Discovery Federal Credit Union – “Get rewarded for good grades at Discovery FCU. Members of any age can earn $1.00 for every ‘A’ grade (or equivalent) on their report card. Members can earn a maximum of $5.00 per quarter, which is deposited into their basic savings (S1) account. To redeem your Discovery Report Card Rewards, simply bring your current report card to the credit union and reap the benefits of good grades.”

BHCU – “When students are a part of our Report Card Rewards program, they will earn $5 for every A grade (or equivalent of) they receive, which means that students can potentially earn up to $50 per school year!”

Lanco Federal Credit Union – “Students in grades K-12 can earn $1.00 for each “A” (or equivalent), up to $5.00 per marking period.”

FNCB Bank – “FNCB rewards K-12 students for their hard work and success during the school year with $1 for every A or number grade above 90% on their report card. Rewards – up to $5 per marking period – are deposited into their FNCB Bank Youth Savings account. To participate, students simply need to bring their report card to any branch within 30 days of the report card date.”

Rhode Island

South Carolina

Family Trust Federal Credit Union – “Club members ages 8 to 12 receive $2 for every A or A-equivalent on their current report card when they bring it in to any branch. We will deposit the reward into their savings account so they can watch their money grow as they continue to bring in report cards.”

South Dakota

Tennessee

Texas

Primeway Federal Credit Union – This Houston based Federal Credit Union will enter the child into a drawing for a top prize of $100 if their report card has all A’s and B’s.

First Service Credit Union – Several Youth Savings programs which vary by age and reward students for good grades.

Credit Union of Texas – Offer a pay for grades that is achieved through a drawing of submitted report cards. “Students may be paid for A’s and B’s earned in the following CORE subjects: English/Language Arts, Math, Science, History/Social Studies, Foreign Languages and one CTE Class”

First Community Credit Union – “Students must have all straight A’s for all semester-end grades for both semesters to receive $35. Award will be deposited into the student’s savings account within 10 business days.”

Chartway Credit Union – Offers rewards for students’ performance in school in various categories. A’s get $2, B’s get $1, but also opportunities to earn for untraditional grading systems and perfect attendance.

Harris County Federal Credit Union – “You can earn $5 per qualifying period containing only* A’s and B’s, up to $20 for the year to be deposited into your Kid’s Treasure account.”

Sunflower Bank and First National – Bring in report cards to the local branch to enter a drawing for a monetary prize.

Utah

UFirst Credit Union –“To encourage high achievement in school, we’ll pay you for your good grades! Bring your final grades into any UFirst Credit Union branch location, and we’ll deposit $5.00 per A (or equivalent) up to $40 into your account.”

Utah Community Credit Union – “If your child’s final report card has each term of the year listed, UCCU will award $1 for every single “A” for the final term (up to $8).”

Central Bank Utah – “Great grades! We pay $1 for every A or A- earned on each child’s report card. Up to $32 per school year for grades 6-12, with proof of report card.”

Vermont

Virginia

Washington

West Virginia

Wisconsin

First National Bank and Trust – Earn $1 for each A and up to $5 per report card.

Wyoming

Free Money May Come with A Catch

It’s essential to remember that these programs may have varying eligibility criteria, restrictions, and benefits depending on where you live and other factors. To find out more details or explore additional local options, visit each institution’s website or branch personally. Remember, building solid financial foundations from an early age is crucial, so take advantage of these resources to set yourself up for long-term prosperity!