Have your teens finally got their first job? Then this is the right time to open up about having a teen checking account. It is also referred to as a high school checking account, a joint account with the parent and teenager as co-owners. Your child is the primary account holder, where both you and your child can deposit and withdraw money, and access online banking for the high school checking account.
Your teenager is finally making money now. You probably got a savings account in your name from when you were born. But now that your child has a job, they will receive regular cheques that need a place to deposit and maybe a few bills to pay. And that’s where the teenage account Pops in. Once your child has their history, they get a taste of independence with their personalized prepaid card, which makes them feel empowered as it is the first step into adulthood.
There are several functional and emotional benefits of having a teenage bank account, and the educational benefits come.
With their first personalized account, your teenager gets the first test of money management. They earned an allowance a few years ago or received checks on their birthdays, but a timely paycheque is a whole new ball game. With their teen checking account, they can check their account balance, set up, direct deposit, make withdrawals from ATM, learn how to budget, use a debit card, Send money to friends and family, make transfers between checking and savings accounts and pay their education fee through a student payment app linked with their bank account.
Further, while your child uses their high school checking account to pay for food and other recurring expenses, you can easily monitor their spending as the co-owner of the account. The motive is for your team to learn proper money management with you as their security blanket. And once they get the flow of it, they’ll be quite empowered when they graduate high school, and either go to college, the workforce, etc.Everyone needs and deserves to learn about money management at some point; your child might also work. Get on a good start to learning more about the functioning of a bank for teens.
Some banks have monthly fees for teenage accounts and require a minimum balance to open the account. Some fees might be fixed for easy budgeting, while other fees may vary with certain account usage or by maintaining a specific balance.
Once your child gets hold of their bank account, they can even use a money management app for teenagers to smartly manage and control their funds and keep track of their spending. The innovation of teenage payment and money management apps has helped several teenagers balance their finances efficiently and smartly. It has even helped teenagers to save a handsome amount of money from a young age.