| Many parents get their child started on the path of | | | | financial learning tool, and monitor their use of the |
| savings with a piggy bank or a savings account with | | | | account for a long time to ensure they understand |
| the local bank. While the school mathematics programs | | | | how it works (with one of the most important factors |
| teach the basics of money (like how to make change) | | | | being that there has to be money in the account to |
| there seems to be a lack of education in money | | | | use it!) |
| management skills - both in school and at home. Most | | | | Whether you use an online check register style |
| children learn about managing money when they | | | | program or the traditional checkbook register, be sure |
| graduate school and move out on their own or begin | | | | your child understands how to keep track of all |
| college, but this learn as you go method has proven | | | | transactions and balance the register each month. If |
| damaging to credit for millions of young Americans | | | | your teenager has a job, show them how a portion |
| who learn "the hard way". | | | | can be placed into a long term savings account, a |
| As a parent, you can give your teenager some | | | | portion placed into the checking account for expenses |
| financial lessons that will help them avoid financial | | | | and bills, and a percentage can be kept in the form of |
| disaster when they leave home and live in the | | | | cash for entertainment. Do the same with any |
| adult-world. Other than teaching them the importance | | | | monetary gifts your child may receive. This is the |
| of setting aside a percentage of all income into long | | | | basics for effectively managing money that most |
| term savings, you might also consider opening a | | | | young adults entering the "real world" are lacking the |
| checking account with your teenager and teaching | | | | knowledge of - and you will be doing great service by |
| them the basics of managing the account. | | | | teaching your teenager these skills before they have |
| Unfortunately, checking account management skills are | | | | real need to use them. |
| not taught in all schools, and it's a skill that is necessary | | | | When looking for a checking account suitable for a |
| for the financial survival and success of adults. | | | | teenager or college student, be sure that: |
| If your local bank offers a free checking account, you | | | | * they don't require a minimum balance |
| may want to open the account there for convenience. | | | | * they don't charge monthly fees |
| Alternatively, you could use an online bank that pays | | | | * you have a choice as to whether or not to link a |
| interest on the balance in the account, does not charge | | | | debit card to the account |
| a monthly fee and does not require a minimum | | | | * you can link your savings and checking accounts |
| balance. Regardless of the account you use, it's | | | | together for free money transfers |
| important that you don't just open the account and set | | | | * you have access to the account as well, to monitor |
| your young adult loose with it! You'll need to use it as a | | | | their usage until they are ready to use it on their own. |