Checking Accounts/Credit Cards for Teens
Did you know that your High School teenager can get a checking account in their own name? Did you know that they can also get a credit card in their own name, with you as a co-signer? Interesting isn't it.
Honestly, I am not sure how I cam across this piece of information but when I found it I was excited? Back in my day, I had no means of cashing my paycheck so I would deposit it into my mom's checking account, then borrow her ATM card in order to get my money. It was awful and very annoying.
Well, the banks have realized that teenagers are earning money and need to put it somewhere. They also realized that is a way of 'branding' our youth into using their bank over any other.
So, my 16 year old has a checking account, ATM/debit card and a credit card. The credit card earns points when buying stuff. I'm teaching my son how to manage his money...wished I'd had this when I was a kid.
Some things that he uses his credit card on we have agreed that my husband and I would reimburse him. We are trying to build his credit early and we want him to understand how credit and credit cards work. How to manage is money. How to make decisions on whether or not he truly needs an item as he has to spend his own money on it. How to be responsible for pay off his debts.
Since we are not in and continuing on the road of the digital age and money has become more of an 'abstract' concept; parents need a way to help kids understand that it's not actually 'abstract' and if you spend it, you have to pay it back.
Using tools to help our children sooner rather than later it what we need to do in order to cope with all the changes.