Handling and controlling household and personal finances are crucial elements of life. Effectively managing finances is a task that requires practice and the accumulation of knowledge along the way. Individuals, as well as entire governments, need that knowledge to survive in our modern world. When a child reaches the teenage years, he or she should become prepared to have and manage a checking account. It’s a parent’s duty and privilege to introduce and educate their teenager to their first checking account.
At some point, your teen will have to face financial responsibilities: rent and eventually mortgage, utilities, credit cards and more. A checking account gives your teen concrete evidence of the successful management of their income and their life’s expenses. They learn the responsibility of their participation with creditors and financial obligations.
Easy Money Management
Keeping all their earned income in one place simplifies the process of tracking their expenses. Instead of spreading their cash around in a wallet, a dresser drawer and a number of other places, they learn to appreciate the ease of maintaining one source to protect and keep their money. The benefit of personalized checks helps them recognize that even though a checking account is all business, it can still be personalized to each individual.
Checking Accounts Encourage Savings Accounts
Naturally, the concept of a checking account, where money is kept for spending, lends itself to the consideration of saving some of that income too. It helps reinforce a sense of financial balance: some is spent for life’s responsibilities and some is saved for life’s unexpected expenses and for future anticipated expenses like home ownership, vacations and retirement.
A checking account helps develop a small but important step in developing credit, especially if a bank debit card is included. Credit is a necessity that will build and follow the teen for the rest of their life. An early start gives them a proper perspective on its importance and relevance.
Initiating a Relationship with a Financial Institute
A checking account is an introduction into the world of financing. Initiating a relationship with a bank is a great way to become an integral part of the financial community. Although it may seem local, the relationship extends out into the entire global community via thin but distinctive threads.
Lessons in life and living are opportunities for a parent to connect with their child while also providing them with crucial training for the road ahead. Teaching your child about the benefits and responsibilities of a checking account is one of the most effective.