Checking & Savings

Teens & Money: Checking & Savings Accounts

In this day and age, parents have left most of the child education responsibilities to schools and teachers.newt However, one subject remains untouched. Financial know-how is not taught in schools, thus when kids grow up and go to college they end up living in debt. Parents may have taught their kids how to spend wisely when shopping or even how to save cash on a piggy bank when they were small kids. Now that the kids are all grown and are now teenagers, the information should be upgraded to new ways of making money and managing it. This is where the idea of teaching your teenage kids about checking and savings accounts comes in.

Parents should first of all sit down with their kids and give them detailed information about a savings account. They should be made to understand that a savings account is one that does not have a debit card or check attached to it. As a result spending money from a savings account is rather difficult. Teens should be taught that when it comes to looking for the most ideal savings account, interest rates are the determining factor. This means that as the money is saved on the account, it tends to accumulate interest based on the percentage agreed upon on opening the account. This policy works in such a way that the more money that is saved, the greater the level of interest accumulated at the end of the day.

It is important to research on the different types of savings accounts before settling for any particular one. For instance a regular savings account would earn interest on a monthly basis and most definitely limits the number of withdrawals a teen can make in a month. Depending on the bank, there could be a fee for monthly maintenance. On the other hand there are other accounts referred to as CDs, which do not allow the teens to withdraw the cash within a stipulated period of time; it could be six months or even one year. Penalties are charged by banks for making withdrawals from the CDs before the stipulated period is complete. There are also the money market accounts that come with higher minimum balances and more limits on the number of withdrawals, but offer the benefit of higher interest rates than the other savings accounts.

For checking it is important to carry out a research with your teen on the different banks and their checking accounts. At the same time, a good number of banks come with teen-specific checking accounts and tools that would help your teen learn how to bank from scratch. At the same time such features would help the teens in matters like comparing terms such as monthly fees and ATM fees. You should open a checking account for your teen that features a debit card as well as checks. Teach your teen how to write a check but at the same new_teentime make him/her understand that checks are not funds. They should also be made to understand that they should not write a check if they do not have the required funds in their accounts, otherwise they are likely to incur some charges or penalties.

There are a number of key points that the teens should also be taught as they open their checking accounts such as how to balance a check book, that a debit card is not limitless, how to deduct the debit card purchases the same way and even how to record the deposits. On the other hand when opening a savings account it is essential to ensure that you sign up for automatic funds transfer. Once this is done, funds would be automatically deducted from the checking account into the savings account.


Here’s Why It’s So Hard to Get Free Checking Anymore..

by Rich Smith

2013 is turning out to be a banner year for bank customers — in a bad way.
According to a recent survey by personal finance website (RATE), this year has already seen record highs set for the amounts that banks charge their customers for ATM fees, overdraft fees, and monthly maintenance fees — just for keeping a bank account open.

According to Bankrate’s 2013 Checking Survey, here’s how much you can expect a run-of-the-mill, name-brand bank to ding you for run-of-the-mill operations … read full article

The U S Federal Reserve s Beige Book released Wednesday afternoon showed that labor markets remained tight across the nation but businesses struggled to find skilled workers while wages only grew modestly The U S Federal Reserve s Beige Book released Wednesday afternoon showed that [...]
Thu, Apr 18, 2019 9:07:00 AM, Continue reading at the source
Overview:   The global growth scare may be subsiding.  It had been fanned by the ECB and Fed statements and projections.  Poor US jobs growth reported in early March and the poor flash EMU PMI late in the month contributed.  The slowdown in China and the flurry of measures to combat it also had a role.  The economic [...]
Fri, Mar 29, 2019 12:29:00 PM, Continue reading at the source
By Avi Gilburt Back in the 1940’s, Ralph Nelson Elliott once noted: At best, news is the tardy recognition of forces that have already been at work for some time and is startling only to those unaware of the trend. So, rather than be startled by the news of the past week, I have been trying to warn anyone who [...]
Tue, Mar 26, 2019 12:42:00 PM, Continue reading at the source
The major Asia Pacific stock indexes are down sharply on Monday amid concerns over a potential recession in the United States The move is being fueled by an inversion of part of the Treasury yield curve However a key Federal Open Market Committee member says the U S economy is in a [...]
Mon, Mar 25, 2019 8:07:00 AM, Continue reading at the source
Persistent uncertainty regarding the strength of the global economy, combined with mixed conviction over the yield curve , pressured U.S. stocks Friday, sending Dow Jones Industrial Average lower by triple digits. Fear of a recession, which sent bond prices soaring, killed hopes ignited only a day before by a [...]
Sun, Mar 24, 2019 1:42:00 PM, Continue reading at the source
%d bloggers like this: