Can Children Learn Money Habits Before They Can Even Read a Bank Statement?
Western Kentucky credit union launches early financial literacy initiative pairing real-world saving with The Berenstain Bears®
PADUCAH, Ky. — Can a child learn to save before they can understand interest? Can they learn the difference between spending and sharing before they can read a bank statement?
Research suggests some of the foundations for those financial behaviors begin forming years before children are old enough for a traditional personal finance class.
On October 1, Signet Federal Credit Union® launched its new Cub Account and Cub Club, a financial literacy initiative for children under age 12 developed through its partnership with The Berenstain Bears® Financial Literacy Program. The program centers on four age-appropriate money concepts — Save, Share, Spend and Earn — and combines storytelling, family conversations, hands-on activities and a child's own savings account.
For Signet President and CEO Jimmilyn Hancock, the initiative raises a larger question about financial education: Are we waiting too long to start teaching children about money?
“Financial literacy doesn't have to begin with a budget worksheet or a lesson about credit,” Hancock said. “For a young child, it can begin with something as simple as putting birthday money aside, saving for a toy, sharing with someone else or understanding that money is earned. Those may feel like small moments to an adult, but they're introducing concepts that children can build on as they grow.”
Financial Habits Begin Before Financial Knowledge
Research from the Consumer Financial Protection Bureau separates youth financial capability into three interconnected areas: executive function, financial habits and norms, and financial knowledge and decision-making skills.
The development begins early.
During early childhood, ages 3 to 5, children begin developing foundational executive-function skills as well as basic values and attitudes related to financial concepts. By middle childhood, ages 6 to 12, financial habits and norms begin to take greater shape as children develop independent identities and observe how parents, family members and peers interact with money.
The CFPB also notes that children ages 3 to 5 may still be too young for abstract financial concepts, but they can practice skills such as planning ahead, delaying gratification, making choices and dealing with limited resources — skills that can later translate into financial behaviors.
“A five-year-old doesn't need to understand an annual percentage yield to understand, ‘I have five dollars. I can spend all of it today, or I can save some of it for something I want later,’” Hancock said. “That's financial education at their level. Our goal is to give families more opportunities to have those conversations early and make them positive.”
Kentucky Is Putting Greater Emphasis on Financial Literacy
The launch comes as financial education is receiving increased attention across Kentucky.
Kentucky law now requires students entering ninth grade on or after July 1, 2025, to successfully complete a one-credit financial literacy course as a public high school graduation requirement. Required topics include budgeting, saving and investing, credit and debt, insurance and risk management, taxes, and understanding documents before signing them.
Financial literacy is also incorporated into Kentucky's academic standards beginning at the primary level and continuing through high school, according to the Kentucky Department of Education.
Signet's initiative focuses on the years before those more advanced concepts become relevant.
“We absolutely need financial education in our schools, especially as students get closer to making decisions about jobs, credit cards, vehicles and college,” Hancock said. “But we also have an opportunity before that. If saving, planning and talking about money already feel normal to a child, we're giving educators and families something to build on later.”
From a Storybook to a Real Savings Account
Beginning October 1, children under 12 can become Cub Club members by opening a Cub Account with a minimum opening deposit of $10.
New Cub Club members receive a copy of The Berenstain Bears® Visit the Credit Union and a Cub Club badge. The account currently earns 5.00% APY on the first $1,000 deposited, with balances above $1,000 earning 1.00% APY, subject to applicable terms and disclosures.
The financial literacy program is organized around four concepts:
SAVE — Learn that setting money aside today can help reach a goal tomorrow.
SHARE — Introduce generosity and the idea that money can also be used to help others.
SPEND — Practice making choices between wants and needs and understand that money is a limited resource.
EARN — Connect money with work, effort, entrepreneurship and responsibility.
The approach mirrors recommendations from the CFPB that encourage parents and caregivers to use everyday experiences to help children develop financial habits. The agency specifically identifies activities such as grocery shopping, buying gas, dining out and paying bills as opportunities to discuss saving, spending, planning and financial trade-offs with children.
“Children are already watching us interact with money,” Hancock said. “They see us use a card at the grocery store. They see an ATM give us cash. They hear conversations about whether something costs too much. Financial education gives parents an opportunity to explain what is happening behind those moments instead of allowing money to feel like something that simply appears when we need it.”
The Role Parents Play in a Child's Money Story
The CFPB describes financial socialization as the process through which young people develop financial attitudes, habits and norms by observing parents, caregivers, peers, educators, media and other influences.
That makes the adults surrounding a child an important part of early financial education.
Rather than expecting a young child to understand complex financial terminology, parents can involve children in simple decisions: setting a savings goal, deciding how much birthday money to save, comparing two prices, completing a chore to earn money or choosing a cause to support.
“The goal isn't to turn a seven-year-old into a financial expert,” Hancock said. “It's to make money something families can talk about. We want children to grow up understanding that money involves choices — you can save it, share it, spend it or earn it — and every choice has a purpose.”
A Different Way to Measure a First Savings Account
The Cub Account creates an opportunity for children to connect those conversations with real experiences.
A child can physically make a deposit, watch a balance grow toward a savings goal and begin connecting the money they earn or receive with choices about what happens next.
CFPB research identifies hands-on learning as one strategy for supporting youth financial capability because direct experiences give children opportunities to practice financial skills and see the results of their decisions.
For Hancock, that means the success of a child's first savings account isn't necessarily measured only by how much money is in it.
“If a child walks into Signet excited to deposit five dollars because they're saving for something important to them, that's a meaningful moment,” Hancock said. “They're beginning to understand that reaching a goal takes time and choices. Those are lessons that can grow with them long after they've outgrown the Cub Club.”
Early Financial Literacy Snapshot
AGES 3–5 — FOUNDATION
Children begin developing executive-function skills and basic values and attitudes related to financial concepts.
Source: Consumer Financial Protection Bureau
AGES 6–12 — HABITS
Financial habits and norms increasingly take shape as children observe family members and peers and begin developing greater independence.
Source: Consumer Financial Protection Bureau
KENTUCKY — FORMAL EDUCATION
Students entering ninth grade on or after July 1, 2025, must complete one credit in financial literacy to graduate from a Kentucky public high school.
Source: Kentucky Revised Statutes, KRS 158.1411
SIGNET FEDERAL CREDIT UNION® — EARLY EXPERIENCE
Cub Account Eligibility: Children under 12
Minimum Opening Deposit: $10
First $1,000: 5.00% APY*
Financial Literacy Pillars: Save | Share | Spend | Earn
Launch Date: October 1, 2026
“We don't expect a child to understand everything about money at five, seven or even ten years old,” Hancock said. “We want to help create the foundation. If we can make saving exciting, make generosity intentional, connect earning with effort and teach children to think before they spend, we're helping start a money story they can continue building for the rest of their lives.”
Disclosure
*APY = Annual Percentage Yield. Rates are subject to change at any time and are not guaranteed. Children under 12 are eligible to become Cub Club members. On 12th birthday, Cub Accounts will automatically transfer to a regular Signet Savings account. The first $1,000 in a Cub Account earns 5.00% APY. Any portion of the balance above $1,000 earns 1.00% APY. Refer to the Account Disclosures for dividend and compounding details. Cub Accounts are not eligible for rebates. A minimum opening deposit of $10 is required to become an official Cub Club member. Other terms and conditions may apply, ask a Member Relationship Specialist for more information. Federally Insured by NCUA. The Berenstain Bears Copyright, Berenstain Enterprises, Inc. 2026.