Research has shown that the path to financial well-being begins young. During their teenage years, children start developing the skills regarding finances that they’ll need as adults. Therefore, the teenage years are the best times to help kids build strong money management skills. Bank accounts for teens are a great place to start if you want your teenager to learn financial lessons.
Although some people might feel bank accounts are for adults only, they help teens develop financial literacy and learn how to manage finances independently. If you’re not sure, below are three reasons parents and guardians should open an account for their teenagers.
It Gives Your Teen a Head Start on Managing Their Bank Account
Bank accounts for teens are quite easy to manage. However, a bit of a learning curve comes with owning a bank account. When you open an account for your teenager, it allows them to learn basic routines. Teenagers can start tracking their spending and how to use banking tools.
It Helps to Build Their Financial Reputation
Another reason parents and guardians should open a bank account for their teenagers is that it helps build their financial reputation. When you open an account for your teenager at a credit union, lenders can use it in the future to confirm that they’re responsible.
Often, lenders ask for active bank account numbers on credit applications. Therefore, opening a bank account for your teenager can help build their financial reputation while creating several opportunities for them.
It Allows Them to Make Financial Mistakes in a Safe Environment
Nobody has perfect money management skills, so we can’t expect it from teenagers. When a teenager is learning how to manage a bank account, you can expect overdraft transfer fees and ATM fees. Therefore, bank accounts for teens create a safe environment to learn how to avoid actions that could incur fees.
A teenager under 18 requires a parent or guardian to jointly open an account with them. Therefore, you have the opportunity to steer them down the right path when they make mistakes.
It’s never too early to open a bank account for your teenager. Bank accounts for teens are safe and come with many lessons like saving towards financial goals and overall money management.