Is Your Teen Ready for a Checking Account?
Ground Rules and Good Etiquette
In many cases, a checking account can be the first time your teen handles money outside of a cash transaction. It’s crucial that you help establish fundamental ground rules and good money management etiquette early in your teens' lives so they continue good habits as they get older.
Concepts like budgeting, saving, spending habits, and how to keep an accurate financial record all carry over into adulthood, and a checking account covers the basics.
Establish a Healthy Money Management Curiosity
Checking accounts can prove to be a gateway into successful financial habits and frequently spark in teenagers a healthy money management curiosity. Soon, your teen will be asking about high return savings options, investment opportunities, and long-term financial planning goals.
Set Up Your Teen’s Checking Account Together
Basic knowledge of how checking accounts function is one of five financial concepts worth teaching your teen before high school, according to Forbes. In your teen's case, you are the financial advisor. Walking your teen through the process of opening a checking account gives him access to your experience and serenity knowing he's done all the steps correctly. Taking the time to teach your teen the basics of a checking account will ensure your teen understands important fundamentals like how to write checks, how to use a debit card, and when to save to a checking account versus a savings account.