Proper money management skills can be taught by parents to their children at a very young age. Taking the time to educate your kids on budgeting skills, the value of saving, and working for their money will allow them to have the basic knowledge required to becoming a disciplined and responsible person. And with that mild degree of responsibility and your guidance, you can properly teach your teenager how to take it to the next level by helping them open their first checking account.
Many people lack the basic skills for proper financial management and end up having financial issues. This void can create huge problems, such as having a bad credit history – which will be an issue when the time comes to securing a home loan. That is why teaching financial management skills to your children is important. When they’re able to properly manage their cash flow, they will be able to have a higher chance of being financially stable.
If you and your child have decided to move forward with opening a checking account – then it’s time to research all the options available, read the terms thoroughly and then select the best option. Note that the best checking accounts are:
- Provide overdraft protection
- Have complimentary online bill paying and account access features
- Charge no monthly fees
- Debit card optional
- Can be linked to their primary savings account
The next step in financial management that your child should learn is how to balance a checkbook. Understanding how much money is coming in and going out of the checking account is important for your child to know how their cash flow works, and promotes good budgeting habits.
If you have children and have not thought about teaching them basic financial management skills yet – this is the time to consider.