Helping your teen open a checking account is a great way to teach him or her how to handle money. However, it's a big step -- one that you want to make sure your teen is ready to take. So, before you go to the bank, learn more about checking accounts for teenagers.
Are There Age Limitations?
Many banks allow teenagers to have checking accounts as young as age 13. However, that doesn't mean that you should allow your teen to have a checking account that young. You need to remember that until your child turns 18, you're responsible for any checking account opened for your teen. In fact, your name will appear on the account with your teen's name. This means, if your child ends up overdrawing the checking account, it's your responsibility to make sure the money is repaid to the bank.
How Responsible is Your Teen?
When you're considering opening a checking account for your teen, it's extremely important to consider your child's level of responsibility and maturity. Some questions that you should ask yourself before you open a checking account for your child, include:
Your Teenager's Financial Status
If your teenager is unemployed, there really isn't a need for him or her to have a checking account. However, a checking account can be a great teaching tool. If your teen is mature enough to start learning about money, you can set up a checking account for your teen and use the account to teach your teen how to manage money using a weekly allowance. It could also be a good time to start encouraging your child to make money by doing chores for neighbors or babysitting.
However, if your teen maintains a part-time job, it's a good idea to set up an account. This way, your teen's paychecks can be deposited directly into the account. While your teen's money can be direct deposited into a savings account, teenagers who are old enough to hold down a job should learn how to manage a checking account and their money.
The fact is, it's important to teach your teenager how to manage money before he or she leaves the nest for good. So, if you feel like your teenager is mature enough to handle the responsibilities that come with owning a checking account, it's probably a good time to open one. Contact a bank, such as Cheviot Savings Bank, for more information.Share
20 April 2016
Adoption is a beautiful thing. Raising a child someone else had is a completely unselfish act of love. Do you want to adopt a newborn in the near future but are afraid you won’t have the necessary funds to do so? Consider meeting with an experienced financial adviser. This professional can sit down with you and recommend viable fundraising options. For instance, you might want to take out a loan. Or you may wish to sign up for a grant. Obtaining a tax credit is also an alternative. On this blog, I hope you will discover effective tips to help you raise money for an upcoming adoption.