How does your teen manage money? Take steps now to set up a student checking account
The holidays are approaching quickly and shopping has begun. Some people are easier to shop for than others. Teenagers, for example, often prefer to simply get cash.
If you have a teen, it’s the perfect time to open a student checking account. These are powerful tools designed to help teens manage their finances while learning the basics of personal finance. It’s not just a checking account. It’s a steppingstone toward financial well-being and independence.
The importance of financial management and the role it plays in personal and financial goals is something every young adult must learn. Financial literacy is a wisdom a parent can expand upon to the younger generation, specifically high school and college students, who are beginning to navigate the world of personal finance.
Often, it takes no more than $1 and a driver’s license, or other government ID, to open an account. Those under 18 should expect a parent or guardian to sign on as joint owner of the account.
Student Checking accounts are specifically designed with the needs and lifestyle of students in mind, offering features that are often not available with standard checking accounts. Here are features you should look for in a these accounts:
▪ No monthly fees or minimum balance: For example, CommunityAmerica’s student checking account is free of monthly charges and has no minimum balance requirement. This is particularly beneficial for students who may not have a regular income or large savings.
▪ Overdraft transfer protection: Mistakes happen when you’re learning how to budget. Overdraft transfer protection protects the checking account from being overdrawn by transferring funds from an account you designate.
▪ Online and mobile banking: Mobile banking should be user-friendly and accessible, and it should be simple to make transfers between parents and teens with no additional fees.
▪ Parental monitoring: Look for an online banking platform that allows a parent to see their student’s account, allowing the adult to offer guidance when needed. CommunityAmerica offers more guidance with financial well-being coaches. This service offers free resources and tools to help students understand how to manage money, build a budget and plan for their future.
Go here to learn more about CommunityAmerica’s student programs. CommunityAmerica is a credit union dedicated to the financial well-being of its members and the community.