Banks for Teens and Young Adults

Selecting banks for young adults can be a challenge. However, unlike just a few decades ago, many financial institutions are happy to offer teens and even pre-teens accounts. This is a fantastic way to teach these kids how to use money wisely so that they can accomplish their financial goals. Even if they do not have goals, parents who teach kids to save and properly spend money at a young age are likely giving their children a very important life lesson, one that many children miss otherwise. Financial institutions can help by providing the framework needed for money management.

Savings First

It is recommended that individuals as young as 13 or 14 have a savings account. Sometimes credit unions will offer even younger members accounts. These accounts are not meant to be profit makers for the company. Rather, banks offer this service in the hopes of establishing a long-term relationship with the individual. That way, when they are older and need loans or other financial instruments, they know where to turn.

A savings account is a good place to get started. This will provide the individual with the resources he or she needs to learn about putting some money away so that it can earn interest. Some parents require their children to put aside a portion of their allowance or, in the case of teenagers, a portion of their paycheck.

Checking for Teens

As kids get older, having access to a checking account can also be an important factor. It can provide your student with the ability to learn how to pay for small bills such as their phone bill. This type of responsibility is essential to learn at a young age. It is critical to teach your teens how to balance a checkbook, too.

Debit Cards

As kids get older, it becomes even more important for the child and then young adult to learn how to spend their money. The use of debit cards can provide that first step. These cards withdraw directly from their checking accounts. This means the risk of overspending is minimal. At the same time, it can provide the individual with access to the funds to use for any type of purchase he or she would like to make. This is a good first step towards the use of credit, too.

Banks can help with all of this. Select a bank that has the structure and programs in place to provide for your teens and young adults. Look for low-cost or free accounts with moderate interest if available. Then, consider any restrictions on the accounts. It is a good idea for you to consider the types of accounts right for your teen and then to select the right one for their needs now and into the future.

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