The time has come to opening your teens first checking and savings account. This may be a difficult process not just for the teen but also for you. What can you do to be sure he or she makes the right decisions? How much control should you have over your child’s accounts and money? Often, these are personal decisions, but having a few helpful tips can ensure the process goes smoothly.
When to Get One
When should you open a checking or savings account? At Belmont Savings Bank, you’ll find a variety of types of checking accounts, including options for your teen. It is a good idea to start considering these accounts even at a young age.
- A simple savings account can help your pre-teen to learn to save money.
- The use of a CD is a great way to put away money given by family and friends from big celebrations (such as graduation or a religious event.)
- When a teen gets a job, it is even more important to put aside some money into savings and have access to a checking account. Having a place to cash checks helps, too.
Ultimately, there is no bad time to open such accounts. Some banks even provide outstanding resources and helpful learning tools to ensure your teen understands how to use the accounts properly.
The Debit Card Question
As a part of opening these accounts, you will need to consider the availability of debit cards. Most bank debit cards, including some of those offered by Belmont Savings Bank include the ability to use the card at any location where MasterCard or Visa is accepted. This means you are giving your teen a way to make payments incredibly easily. Is this something you want to provide your teen access to?
If you do decide to use this method of assessing funds, there are a few things to teach your son or daughter.
- Teach your child about the use of debit cards including how it works just like a check written against the account.
- Consider limited access to cards even if one is made available. For example, instead of carrying the card all of the time, your teen can ask for it when he or she needs it.
- Ensure your teen is maintaining a checkbook. By doing this, he or she can clearly see where money is going, what is in the account at any time and can set and achieve goals.
- Belmont Savings Bank has free tools to help organize where your teen is spending money. Their free online banking, with FinanceWorks makes it easy to organize a budget.
- The use of a bank’s mobile app can be convenient and help your teen budget on the go.
The debit card is just one component of managing the teen’s checking and savings account. By paying attention to his or her use of these accounts, you can guide decisions.
Why It Is Important to Establish an Account Now
There are many reasons opening a checking or savings account at Belmont Savings Bank is a solid idea for your teen. It teaches financial responsibility. It teaches your child how to divide his or her income between both savings and spending goals. It can even help the child to establish good habits of maintaining a checkbook. Over the long term, this will, undoubtedly contribute to your child’s ability to manage his or her wealth and income well into the future. What you teach now will have a direct effect on your child’s future financial abilities and limitations.