4 Valuable Lessons from Teen CheckingComment October 17, 2012 by Triangle Credit Union
I had a hard time settling into the financial real world that greeted me after high school. As I started college, credit card offers came fast and furious and before I knew it I was in debt and struggling to make payments.
My work-study job wasn’t enough to keep my checking account above water and my bills current. I fell so far behind that I had to get a second job and as a result, my studies suffered.
Your teen’s experience doesn’t have to be so glum, though. A bit of discipline and real world education will give them the tools to make prudent financial decisions, setting the stage for the course of their college career and adult life.
Early practice with a checking account is one way to impart that discipline. Here’s how:
- Teens with a checking account learn important financial vocabulary – Debit, Credit, ACH, Direct Deposit, Interest Rate, Overdraft, are all terms we use fluidly as adults, but teens with no exposure to these terms before college may feel like they’re learning a new language when they set out on their own.
- Teens with a checking account learn how to bank online – There’s little doubt that internet and mobile banking is the way of the future. But banking online is often not an innate ability. With an early start with a checking account, a Teen can take the time to learn how to set balance alerts, pay bills, and make transfers.
- Teens with a checking account learn the true value of money – Working with real money in their own account, a teen will quickly learn how much things cost.
- Teens with a checking account learn how to save – Once a teen sees the true value of money and learns to budget. It follows that they will be inspired to save.
Our Teen Club checking account for people 13-17 has no monthly fee and comes with a free debit card. The account is safe, Teens cannot overdraw for POS debit purchases, and the need to carry cash is eliminated. To further discuss the benefits of Teen Club, visit one of branches, call, or open online.
By the way, I eventually balanced my checkbook, my grades and my workload. But, it would have been easier if I had been more prepared.
Ian - eCommerce Content Specialist