Why Your Teen Should Open a Checking Account
According to a 2022 study, only 14.8 percent of high school students in Rhode Island were required to take a personal finance course. Aside from the eight states that have state-wide requirements for financial education, the national average drops to 9.3 percent. If school systems are not providing their students with proper financial education, it is important for parents to help their teens learn to manage their own money.
An easy way to do this is by opening a joint checking account with your teen. A checking account is a great way to help them begin their financial journey and set them up for success while they are young. Not convinced? Here are six reasons a checking account makes perfect cents for your teen:
- Freedom: Opening a joint checking account for you and your teen will give them the freedom to spend their own money but will give you peace of mind and the ability to monitor their account. With digital banking and mobile alerts, you will be able to track when and where your teen is spending their money. You can see if their spending seems like it might be getting out of control and prevent them from reaching that point.
- Money management: With their very own account to store their babysitting money, your teen will be able to track their funds and see their account balance fluctuate firsthand. The freedom to and the ability to shop online with a click of a button will teach your teen how to prioritize what they want/need to spend their money on the most. Also, if they have a part-time job, they will be able to get their paychecks directly deposited to their account, saving you a trip to the bank.
- Setting goals: If your teen plans to save up for a car or a new laptop, having their own checking account will make the saving process that much easier for them. They will be able to track deposits and stay on top of payments right from their phone. Learning how to save is a great skill to have and will help your teen long after they transition to adulthood.
- Financial responsibility: Now that they have their own account, your teen can be responsible for paying for their own hobbies or a day out with their friends. They will learn the pricing of different items and understand why you tell them there’s food at home when they ask to go to McDonalds. This will further help them learn to manage their money as well.
- Introduction to banking: Someday, your teen will be applying for a mortgage or opening their own business. It is good to familiarize them with financial institutions now, so that when they are adults, they have a good understanding of what resources are available to them at a credit union or a bank.
- Safety: Finally, opening a checking account can be an effective way to keep your teen’s money safe. It is easy to misplace cash, or have it stolen, but it is even easier to cancel and replace your debit card if the latter occurs.
A checking account is a strong way for your teen to learn about personal finance and money management. With digital banking and no fees, it is a simple way as well. If your teen is interested in embarking on their own financial journey, we have just the right account for them.