Teens Need a Bank Account

Does your teenager have a bank account?

Years ago, my 17-year-old son had a summer job outside the home. He needed a way to cash his checks and deposit them into a bank account. It was a great experience and I learned a few things as well. First, a student can open a bank account at most banks for free if they’re age 24 or younger.  Some even offer sign-up bonuses. They can bank without a monthly service charge. Plus, they have access to a Debit Card, ATMs, online banking, and automated bill-paying services. Having access to an ATM at a convenient location will help them avoid the extra fees.

Experts at Yahoo Finance agree. If you want your student to learn money management skills, get him or her a checkbook instead of a credit card. In fact, a survey of 42,000 first-year college students found that the earlier teenagers had access to credit cards, the less prepared they felt about managing their own money in college. Those who had checking accounts, by contrast, were “markedly more prepared” to handle their finances than those who were unbanked before college. Janet Bodnar, author of the book Raising Money Smart Kids says, “Young people need to have finite amounts of money to learn essential skills – such as budgeting and monitoring their accounts.” Help your teen open a free bank account to teach basic skills before issuing a credit card. Learning traditional money management with today’s digital tools is an important step in wise stewardship.

And if a lack of money management skills has led you to credit card debt, let Christian Credit Counselors help. They can create a debt management plan that will work for you. For more information call the Crown Helpline: 800-722-1976 or visit online at crown.org/ccc.