Teenage is the time when the person starts to learn about the importance of money. There are many kids who do not know anything about money and they live off their parents. As a teenager starts to work part time to supplement his pocket money, the child also starts to learn about the importance of money. This is the time when the parents have to make sure that there is a checking bank account for the child.
There are various advantages of opening a checking bank account for teenagers. Before knowing the advantages of this kind of bank account, one needs to know more about this account type. This is an account that is usually a savings account in which the teenager will be able to deposit the funds that he is earning.
There are some banks that may not allow a teenager who is below the age of 18 to open an account. The reason for this is that the child may not be legally prosecuted in case the child has an overdraft. To overcome this problem, banks usually do not allow the kids to open this kind of account. When the teenager is over the age of 18, the person can open this account which has various benefits.
1. Saving:
The child is able to save a lot of money through this method of opening an account. There are times when the teenager will be earning some money as income from various part time jobs. If there is a checking account, then the kid can save the money in these accounts. It will be a good lesson for the teenager in financial planning and also in saving. The main reason for this is that the teenager will learn an important life lesson at a very young age which will help in the future.
2. Independent:
The teenager also starts learning to be independent of the parents. This is the time when the teenager learns to live within the means and as the funds that are provided by the parents are slowly reduced, the teenager will learn to depend on his own income and learn to stand on his own feet. This independence that the teenager learns though the savings and operation of the checking bank account will help the child in the future too.
3. Payments:
The teenager will also learn to pay some of his own expenses by using the money from the checking bank account. The child will become more responsible because of this. This means that the child has to earn money to pay off the bills. The parents can use the opportunity to make the teenager to become more responsible in life after many years of care free living. The teenagers who learn about these things early in life are the ones who will be able to cope with various problems, later on in life. This will also make them to become better people in the long run.
These are some of the many benefits that are present in opening a checking account for a teenager. The minimum balance in these accounts should also be maintained by the account holder to prevent the penalty from being levied on the money in the account and the teenager will lose hard earned money without reason!
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