There is an ongoing debate as to when a teen should set up a checking account. Some experts state that checking accounts should begin at adolescence, while others say the last year of high school is more appropriate. Regardless of when you decide to assist your teen in opening a checking account, doing so is the first step on the road to financial responsibility.

If you have taught your child to learn how to balance a checkbook utilizing your own checkbook as a model, you have taught them well. There are several types of checking accounts for teens.

There is the regular checking account which gives your teen full control of the account, and there is another called a “joint” account wherein your name and the teen’s name are listed on the account as well as the checks.

It’s a good idea to have your child research several banks to see which offers the highest interest rate. Then assist them with opening the checking account at the preferred bank. Also available for the teen offered by many banks is a debit card. This enables them to use the local ATM in case they need cash for any emergency.

A checking account is a great way for teens to understand the value of saving and the consequences of overspending. If they write a check and do not have sufficient funds, a valuable lesson will be learned. They will begin to become financially responsible for their own debts while, at the same time, understand how the banking system operates and their role in it.

They will have to balance their own checkbook, ensure that enough money is in the account before they write checks, and learn how the process of writing checks works. They will also learn how long it takes for a check to processed, how to deposit money into their account as well as access their account online, if appropriate.

Responsibility for their financial needs will be a lesson well learned. After they graduate high school and go on to college, they will have more expenses that will require payments made by check. Managing their checkbook will become more important as time goes on and assisting them with any problems that may arise will be helpful to them.

The responsibility of keeping the checkbook balanced, listing each check written and deposits made, ensuring that there are sufficient funds to cover checks, and paying their bills will become part of their daily life. Opening a checking account early, even if the opening balance is only $50.00, will be a wonderful learning tool for young teens.

Suggested Reading:
+ Financial help for Teens
+ Financial Plan for Teens
+ Teen Wasting Money

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There are certain conditions under which our teens would need financial help. Whether it’s money for tuition, books, incidentals, clothing, or general items – more often than not they will come to you for money.

From their perspective, they have always received what they needed from mom and dad. At what point, then, do you need to teach your teens about money so they can take care of themselves when the time comes?

It is a good idea to teach children about the value of money early on. From the time they are given their first allowance, they are told to put the money into their piggy bank and save it for when they really need it. While they have no concept of money at a young age, it’s still a good place to start.

As the children become older and reach their teen years, parents may assist them in opening a checking account or savings account. If they are properly taught how to manage their money, they will be able to make decisions that are financially sound.

Teens who think that “money grows on trees” require an entirely different learning experience. For example, other than the necessities of life, teens may ask for “walking around” money or a few dollars to go to the movies, the mall, or hang out with friends. If they drive, they might ask for gas money, restaurant money, and a variety of other incidentals that might come up during the course of a week or weekend.

If this is the case, it’s time to teach teens that you are not the national bank, but that there are ways in which they could earn money and become financial responsible. Applying for a part-time job after school is one way. Another is baby-sitting for neighbors’ children, or asking them if they have any jobs that need to be done on the weekend. If you combine these earnings with the allowance you give them, they will no doubt accumulate enough money to pay their own way.

Now comes the difficult part – teaching them how to utilize their savings in an appropriate manner. Just as you may discuss the family budget with your kids, teaching teens how to set up their own budget may be a wise decision. By having teens write their own budget, they can visualize and comprehend the importance of money earned versus money spent in order to maintain their budget.

This is the first step towards teaching teens financial responsibility. In addition, it will give them confidence in their decisions and will allow them to make mistakes and learn from them.

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