A teenager’s first checking account is an important step for your child to get exposed to the world of financial planning. It is highly imperative for teenagers to learn the concepts of earning, spending, and saving from an early age to ensure that they are financially informed by the time they are ready to face the world alone.
Several large banks and financial institutions encourage teenagers aged 13 to 17 to use checking accounts for. Most banks don’t charge a maintenance fee to keep a teen’s checking account and the accounts can usually be opened with a very low initial deposit. As a parent, it is your duty to open a checking account for your kid early on in his/her financial career to set them on the path to managing their finances successfully. Here are 8 good reasons why your teen should open a checking account today.
1. To Learn About Money Management
Opening a checking account early in a teen’s developmental years will provide them with a clear-cut idea about money management and the different concepts of expense tracking and budgeting. Children will learn more about utilizing their existing financial resources by being able to track their account balance and spending accordingly. A lack of steady flow of income will also help teens to realize the importance of preserving money and maximizing opportunities.