Investing in Your Child's Future

Investing in Your Child's Future

Start Early, Build More Opportunity

Small steps today can make a meaningful impact on your child’s future.

Saving and investing for your child can help support goals like education, housing, or long-term financial security. The earlier you begin, the more time your money may have to grow.

Choose the Right Approach

Different goals call for different types of accounts.

Here’s a simple way to compare common options:

Option Best For Key Benefit
529 Plan Education savings Potential tax advantages for qualified education expenses
UGMA / UTMA Flexible use Funds can be used for a variety of future needs
IRA (Working Teens) Long-term growth Opportunity to start investing early and potentially benefit from compounding over time
Savings & Certificates Short-term goals Stable, predictable growth with lower risk

Education-Focused Savings

529 College Savings Plans

A commonly used option for education savings.

  • Earnings may grow tax-deferred and be tax-free when used for qualified education expenses
  • No income limits to contribute
  • Can be used for college and, in some cases, K–12 or training programs

Education Savings Accounts (Coverdell ESAs)

An additional option with contribution limits.

  • May offer tax advantages for education expenses
  • Annual contribution limit and income eligibility restrictions apply

Flexible & Short-Term Options

Custodial Accounts (UGMA/UTMA)

Save and invest in your child’s name for future use.

  • Funds can be used for a wide range of expenses
  • Contributions are irrevocable
  • Assets transfer to the child at the age of majority

Accounts in Your Name

Maintain control while setting funds aside for your child.

  • Save or invest in your own account
  • Gift funds when the time is right

Savings, Certificates, and Money Market Accounts

Lower-risk options for shorter-term goals.

  • More predictable growth
  • Useful when funds may be needed within a few years

Long-Term Growth Opportunities

Custodial IRAs (for Working Teens)

A way to introduce long-term investing early.

  • Requires earned income
  • Roth IRAs may allow access to contributions under certain conditions (rules and penalties may apply)
  • Early contributions may benefit from long-term compounding

Beyond the Account

What you teach can be just as valuable as what you save.

  • Talk openly about money and financial decisions
  • Encourage saving and goal-setting
  • Help your child understand long-term planning

When to Seek Guidance

You don’t have to navigate these decisions alone.

USSFCU members have access to professional guidance through Fellows Financial Group. An advisor can help you compare options and build a plan that fits your family.

Schedule an Appointment →
Learn More →

This content is for general educational purposes and is not tax, legal, or investment advice. Investment products are subject to market risk and may lose value.

Members' Voice Testimonials

This credit union is the best, I love the customer service and you can't beat the interest rates. I'm happy to be a member of this great credit union.

- James · Locust Grove, GA

The branch manager introduced herself and was extremely helpful. She stated that if there is anything we ever need to please let her know. Very positive experience!

- Larry · Cumberland, MD

Greta was absolutely amazing - as always. She makes me and my parents feel valued and supported. We are forever grateful. [The Credit Union] has been hugely supportive over many years. And we feel known and cared for.

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Long as I have been with the credit union, I haven't had any problems. I also like the protection on my account.

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My overall experience at the credit union was exceptional. The staff was hospitable offering water, my service was timely and professional and the office was well lit and clean.

- Denise · Washington, DC

As a member for more than 40 years, i have always had great service from the USSFCU and know that they stand behind their great reputation.

- David · Silver Spring, MD

A top rate Credit Union, [I'm] privileged to be part of! Thank you for all you do for our family! USSFCU Credit Union was able to resolve our financial situation - vehicle, personal loans, customer service/recommendations, within 6 months. We belonged to another credit union for over 20 years, with results not even close to comparison. We switched ...

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Your people and products are amazing. The recent [online banking] overhaul is phenomenal. [I've] been electronic banking since Tele action phone banking - paying bills with my push button landline decades ago. USSFCU is light years ahead of everyone else in terms of ease of use and client experience!

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I have been a member for more than 30 years. I no longer reside in the DC area but continue to bank with USSFCU because of the ease and the customer service.

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I have been a member for over 50 years, and I have always gotten good service with loans, when I had to have service at a branch, and when I needed to have money sent to me from my savings account. The personnel have always been friendly and treated me with respect.

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I especially appreciate being able to quickly speak with someone (not a robot) and that person has always been knowledgeable and helpful.

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Excellent customer service streamlined and transparent process. The representatives are efficient, knowledgeable, and understanding of the type of loans offered by Credit Union.

- Erwin · Ellicott City, MD

The USSFCU behaves as a credit union ought to behave. The staff works with and for the members, not for a corporate board. Interest rates for a car loan, a home improvement loan, and a mortgage are low and terms are transparent.

- Ruth · Takoma Park, MD

Staff are courteous and friendly to work with. Very knowledgeable about services and products offered or available. Excellent follow-up with customers.

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I have appreciated USSFCU services for many years since I left my work on Capitol Hill. I have appreciated the occasional webinars on purchasing a home or retirement planning.

- Jamie · Washington, DC

I have been a member since 2006, and have always appreciated the customer service response to any concern or query. In addition, as I have traveled extensively, USSFCU has provided support and access.

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I've had a credit union account for decades, even though I no longer work on Capitol Hill. I now have two accounts. I've been able to do all of our banking remotely, by app or by phone.

- Richard · Washington, DC

I have been a USSFCU member for almost 20 years. There is nowhere else I want my money to be. I always receive excellent service.

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I deeply appreciate the stellar service, the proficiency, the professionalism, and the kindness. I am truly honored and grateful to bank with a financial institution that treats customers like family.

- Angela · Alexandria, VA

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