Today, many adults struggle to maintain their finances. In fact, 94% of South African citizens are unable to retire comfortably, according to the IOL Personal Finance website. And, some say that unhealthy money management is likely to continue with the next generation, as well.
While millennials may be making more money than their parents did, they don’t appear to be investing or saving for their future.
Luckily if you have a teen living under your roof, you have the power to turn this grim outlook around. By providing your teenager with the skills, knowledge, and experience of managing their own bank account, you can better prepare them for the future.
Read on to find out how to open a bank account for teens!
How to Open a Bank Account for Teens in 3 Easy Steps
Opening a bank account for your teen isn’t difficult. And, the wisdom gained makes the process well worth it.
If you are considering a bank account for your teenager, here are the steps you should take.
1. Research the Possibilities
There’s a range of possibilities available for minor bank accounts. These include both checking and savings, as well as personal and joint accounts. In addition, you can choose to provide them with a debit card and even set spending limits to prevent overages from occurring throughout the month.
Together with your teen, you should first look at the available options, and decide what is best for your family.
Remember, you can always make adjustments to their account as they get older and gain accountability. Once they prove that they can handle a checking account responsibly, you may choose to opt for an account with increased freedoms.
2. Set Up the Account Together
It’s best for your teen if you make the entire process from start to finish, a joint effort. When you decide on the account that you prefer, you should go together to set up the account so that they get a first-hand perspective of what’s involved.
This will better prepare them for setting up future accounts on their own. And, it will give you the opportunity to help with the set up so that all of the bases are covered and they don’t make any impulsive decisions or go in a direction other than the one that you have agreed upon.
You can inform the bank if you have decided to link your accounts or if you would like to make regular deposits to their account as well. And, this is a good time for you and your teen to get the answers to questions that you might have.
3. Monitor Their Account and Make it a Learning Experience
Once the account is set up, you should monitor it during the initial period so that your teen does not form any habits that incur costly consequences.
You can also show them how to monitor their spending habits, and how to set a monthly budget based on their checking account history.
This will help your teen to develop wise financial habits that will follow them throughout their life.
Need Financial Assistance Now?
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Setting a good example is essential when you open a bank account for teens. But, if your own finances have become unmanageable, let us help get you back on track.
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