Posted on February 28, 2010.
Select Checking accounts for teens One of the responsibilities of parents is to instill financial values to their children and teach them good skills of money management. At what age should your teen have a chequing account? Although there is no "right" or "wrong" answer to this question, there are a number of factors to consider to help you reach a decision.
If your teen have an account?
Is your work boy? If your teen has a part-time job is the right time to set up a bank account if they do not already have one. At the very least, a savings account is appropriate for a teenager working, and offers the opportunity to teach your child how to save a percentage of all revenue coming in. The financial ability alone can help transition to the knowledge of adults responsible management of funds that can prevent the execution of the debt more than they can afford to pay.
Is your teen pay for part of its own bills? Often, teenagers get their first car while still in high school. While some parents take responsibility for additional expenses of another vehicle in the household creates, it's not a bad idea to give this responsibility to your teen. Registration of vehicles, vehicle maintenance, insurance and gasoline are all necessary expenses of owning a car. A current account can be used to pay these fees, and under the watchful eye may not only be a lesson in responsible ownership of the car, but a lesson in the audit.
How to choose a checking account for teens
Checking accounts are not the same from one bank to another, or between the credit unions. In fact, there are often a number of different current accounts available in a single bank. Selection of the current account that suits your needs takes a little older comparison shopping.
Your first consideration is whether the bank you wish to use allows minors to have a checking account. Some banks will not open an account for youth under 18 years - since a minor can not be held to a contract. So if your teenager discovered the account and spends more than he or she has - the bank can not legally collect on it if the young person decides not to make it good.
Some banks open accounts for teenagers with two pieces of identification, while others require an adult co-signed by the party responsible for this account. You can start with the bank you already use to ask questions about their current account of the policy adolescents. If they say they do not allow it, ask about co-signing the account. If you have a good relationship with the bank, they may allow you to setup the account yourself if their standard policy prevents minors to use the control account products.
There is a checking account at the national level for people under 22 years offered by the young Americans Bank in Denver (303-321-2265). You need a minimum deposit of $ 50 to open the account and must keep a minimum of $ 150 in the account to avoid monthly service charges. Keep in mind that many merchants do not accept checks from outside the state - so it can not be in your best interest to choose a bank in another state even though it accounts open nationally.
When you choose a checking account for your teen, whether or not you want him to have access to cash with a debit card or ATM card. This creates a new opportunity for financial courses and discipline - but some parents worry that it encourages the use of credit cards in the future.
If your teen is on track to go to university is a good idea to learn how to use a current account and keep track of their transactions. It is a skill many parents on appearance, and which, if adolescents are exposed before they go themselves, give them a head start in life.
