Magnifi Financial: From the First Piggy Bank to the First Set of House Keys

"It's almost like how to prepare your kid for the next phase of life in a way," Grefsrud said.

Magnifi, a member-owned, not-for-profit credit union, offers services ranging from youth savings to auto loans and mortgages. Our conversation with Grefsrud focused on how families can connect these tools to everyday lessons like setting money aside, making spending decisions, understanding borrowing, and asking questions before a major purchase.

Parents do not need to deliver all those lessons at once. The next useful conversation can be as simple as deciding what to do with birthday money.

The Early Years: Make Saving Familiar

Before children can manage their own money, parents can begin setting some aside for them.

Grefsrud's advice was to start with a savings account and a contribution the family can maintain, even something as small as $5 a week. At that pace, a family would contribute $260 over 52 weeks, before any interest or dividends.

The amount can change with the family's circumstances.

The habit is what parents are beginning to establish.

As children grow, those deposits can become something they participate in. A birthday check offers an opportunity to talk about saving part of a gift. A toy they want can become a goal with a price and a timeline. Looking at the balance together gives the conversation something concrete.

Magnifi's Little Scholars Savings serves children ages 0 to 12 and includes a birthday gift each year and a free gift with deposits of $25 or more. The account transitions to Boom! Savings at age 13; that account is designed for ages 13 to 19. Both are listed without monthly fees or penalties.

These incentives are ways to encourage children to keep saving.

The Tween and Teen Years: Give Them Money to Manage

Eventually, children need opportunities to make spending decisions themselves.

That might mean managing money for concessions at a football game, deciding how much allowance to save, or choosing between a small purchase today and something bigger next month.

Grefsrud pointed to Greenlight, a debit card and money app for families, as one tool for practicing those decisions with parental involvement.

Through Magnifi's partnership, eligible members can receive Greenlight at no cost* while maintaining their Magnifi account as the funding source. It includes debit cards for up to five children, spending notifications, parent controls, chores and allowance features, savings goals, and gamified financial education with Greenlight Level Up™. Registration is available through Magnifi's online banking or mobile app.

Parents can use those features to start conversations. What did a child plan to spend? What actually happened? Did a purchase feel worth it afterward?

A useful practice is to agree ahead of time on what a set amount must cover. For example, a parent might provide spending money for an outing and explain which purchases are the child's responsibility. Reviewing the choices afterward makes the lesson more specific than a general reminder to "be careful with money."

*Subject to terms. Details at mymagnifi.org/greenlight.

The First Paycheck and Life After High School: Give Income a Plan

A first paycheck creates a new set of possibilities, and a good reason to talk about where money will go before it is spent.

Whether a young adult is starting college, entering a trade, or working full time, the budget needs to reflect actual take-home income and actual responsibilities. A student whose family covers housing will have a different plan from someone paying rent, utilities, groceries, and transportation costs.

Magnifi's budgeting guidance recommends tracking spending for a month to understand current habits, then choosing a budgeting method that is practical to maintain. It also suggests brief weekly check-ins and offers a budget worksheet and digital tools for managing money.

Parents can make that process less abstract by reviewing a first pay stub together and listing which expenses the young adult will now cover. The conversation should include irregular costs, too, like school supplies, a vehicle registration bill, or a trip home.

This is also a useful time to understand the checking account itself. What fees might apply? Which ATMs can be used? How are purchases and pending transactions displayed? What happens if the balance is too low?

For a planned purchase farther down the road, Magnifi offers My Goal Savings, which allows members to automate deposits toward a chosen goal. Because the account has deposit requirements and an early-withdrawal penalty, families should review its terms and consider when they will need access to the money.

Early Adulthood: Learn How Credit Works Before Depending on It

A young adult may handle a checking account responsibly and still have little credit history.

Grefsrud identified this as an important next step after school, especially for someone who will eventually want to finance a vehicle or purchase a home. She suggested discussing a credit card with a modest limit and an affordable interest rate as a possible starting point.

The lesson should begin with repayment.

The Consumer Financial Protection Bureau recommends paying on time, keeping balances low compared with available credit, and applying only for credit that is needed. Carrying a balance and paying interest are not necessary to build a good credit score. Paying the balance in full each month helps keep borrowing costs down.

For a young adult ready and eligible for a card, one manageable approach is to use it for a small, planned expense and budget to pay the statement balance in full by the due date. Payment reminders or automatic payments can help, provided enough money remains in the payment account.

Magnifi lists no-annual-fee credit cards, including its Platinum option, which emphasizes a lower APR relative to its rewards options. Applicants should review current terms and eligibility; an advertised card is not a guarantee of approval.

Parents can also explain that a credit limit is the lender's maximum, not a suggested spending target.

The First Car: Calculate What It Takes to Keep It

A first vehicle brings freedom, but its monthly loan payment tells only part of the story.

Insurance, fuel, maintenance, registration, and repairs also compete for the buyer's income. Before shopping, a young adult can build a transportation budget that includes those expenses and leaves room for the unexpected.

The CFPB's auto loan guide encourages borrowers to compare financing and consider the full cost of a loan. A longer repayment period can reduce the monthly payment while increasing total interest costs. Comparing the APR, amount financed, loan length, and total payments helps reveal that tradeoff.

Magnifi finances new and used vehicles, including purchases from dealerships and individuals, and offers prequalification to help buyers establish a loan amount before shopping. Its published terms explain that rates and payments depend on factors including creditworthiness, the vehicle, the loan amount, fees, and the repayment term.

For parents, this milestone is an opportunity to sit beside a young buyer while comparing options. Two vehicles with similar sticker prices may have different insurance or maintenance costs. Two loan offers with similar payments may take different lengths of time to repay.

The First Home: Ask About Options Before Ruling It Out

Homebuying can feel out of reach before a young adult has spoken with a lender.

Grefsrud encouraged families to learn about available programs rather than assume every buyer needs the same down payment. Magnifi's first-time homebuyer resources list conventional options with down payments as low as 3% for qualifying first-time buyers, FHA loans with 3.5% down, and Rural Development financing with no down payment for eligible borrowers and properties. Income, location, credit, and other requirements vary.

A smaller down payment still leaves other questions to answer. Buyers should ask what cash they will need at closing and what the full monthly payment includes. Taxes, insurance, any mortgage insurance, maintenance, and repairs all belong in the affordability discussion.

A helpful early conversation with a lender can cover three questions:

1. Which programs fit this buyer?

2. What money is needed upfront?

3. What monthly cost fits the buyer's budget?

For parents helping a young adult prepare, the groundwork connects back to earlier stages: consistent saving, a working budget, and responsible credit use.

A Lesson That Connects Every Stage

No family moves through these milestones on exactly the same schedule. Some children begin earning money early. Some young adults need a vehicle before they leave school. Others will rent for years before considering a home.

Parents can keep the conversation open as circumstances change.

A child who learns to pause before spending birthday money has practiced making a choice. A teenager who checks a balance before an outing has practiced planning. A young adult who asks about the total cost of a loan has taken that same habit into a larger decision.

The next lesson does not have to wait for the next major milestone. It can begin with the money a family is managing today.

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Frequently Asked Questions

When should parents start teaching kids about money?

Earlier than most people expect. Before children can manage money themselves, parents can start setting some aside for them. Laura Grefsrud, Branch Manager at Magnifi Financial, suggests a savings account and a contribution your family can keep up, even $5 a week.

What savings accounts does Magnifi Financial offer for kids?

Little Scholars Savings serves children ages 0 to 12 and includes a birthday gift each year. At age 13 it moves to Boom! Savings, which is designed for ages 13 to 19. Both are listed without monthly fees or penalties.

What is Greenlight?

Greenlight is a debit card and money app for families. Eligible Magnifi members can get it at no cost, subject to terms, with their Magnifi account as the funding source.

Where are Magnifi Financial's locations?

Magnifi Financial has locations in Fargo, West Fargo and Moorhead. Visit mymagnifi.org to find the one nearest you.

This article provides general financial education, not individualized tax, investment, or lending advice. Consult a qualified professional about your circumstances. Account and loan eligibility, terms, and offers are subject to applicable requirements and change.

Magnifi Financial
Locations in Fargo, West Fargo, & Moorhead
mymagnifi.org
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