Did you know that teenagers have incredible spending power? They influence marketing practices of large corporations. With that in mind it is important that parents introduce their teens to smart spending and saving practices. It is also important to familiarize them with the purpose of savings and checking accounts and teach them to manage those accounts.
Having a checking account as a teenager can be great practice to learn how to manage finances. Make sure your child understands the basics of a checking account, terms like credit and debit, available balance, bank fees and overdraft fees. A personal banker can be a great help in answering questions your teen might have.
It is also important to discuss ATM safety and the convenience it provides. Understanding the difference between a debit card and a credit card is very important. Another great tool to consider is online banking. Teens nowadays are very internet oriented and prefer instant updates verses monthly paper statements.
Introducing your teenager to the basics of budgeting will help them manage their finances in the future.