Parents: Help Teens Bring in the New Year with a Great Financial Start/ January 5th, 2017
Chances are at least one of your New Year’s resolutions has to do with money—probably to save more of it, or pay off bills. How about the resolution of helping your kids become more financially savvy?
Chances are, your child already has a savings account. A debit card and checking account are great additional tools for helping young adults learn the basics about money management.
Explain to teens that a debit card is convenient, but the key to using one properly is knowing what's available in their checking accounts. If they spend more than what's available, they'll face overdraft consequences.
Though using plastic, or even their phone, is often the preferred method of shopping, it's still important for teens to know how to write a check. Have your children write you a check for, say, their share of a cell phone bill or something else they are responsible for, to get them a little practice. Encourage teens to regularly check their account balances online. Multiple accounts for teens also gives them practice transferring funds from one account to another and helps them learn the importance of knowing their balances. And having unique accounts for different purposes helps them set and achieve savings goals.
Introduce your teen to your credit union. The folks there can give him or her the tools to make those first financial steps strong ones.
Visit our Youth Activities page for more fun ways to help teach your kids about money.