When helping your teen open their first checking account, it’s always important to consider features, requirements, and benefits of the account especially when they’re first starting out. Teens may not be familiar with all the varied terms, so it’s helpful for a trusted resource (such as a parent or other family member) to help guide them through the process.
You can help your teen through the process by first doing some online research. It may not be quick and easy, but knowing what offers are out there and comparing them is the best way to know if you’re getting them a valuable checking account.
Here are several things to consider as your teen opens their first checking account:
- Is this checking account free? It may seem free, but be sure to read the fine print as there may be requirements that to meet to avoid a monthly service fee.
- Does this checking account pay monthly dividends/interest? While this isn’t typical, if it does, this could be beneficial. Be sure to check out the requirements that need to be met.
- Are the account requirements easy to maintain or a lot to remember? It’s best to work with a company that keeps things simple and straightforward.
- Are there other perks that go along with having that checking account? These could be member perks, loan discounts, savings rate increases, etc.
There will likely be other things to consider, but these are items to be aware of before deciding. Once you and your teen decide on the Credit Union/Bank, go into a branch or open your account online.
For the first account, going in-person may be beneficial so your teen can hear all about their offerings. They will offer a debit card, which is a secure, safe way to spend funds. You will also want to learn about online/mobile banking resources, which will help your teen learn how to manage their money and prepare for the future.
Once all your questions are answered, know that you can always go back, call in, or chat with their representatives when further questions arise in the future.
This may be the same organization you utilize when your teen is getting their first car loan, first credit card, etc. This wouldn’t be a bad time to research their offerings on the lending side as well. If the organization offers great rates on their deposits and loans, you’ll likely feel pretty good about your decision.
The best part is you can change your mind at any time! Checking accounts are easy to close if you’re not happy, and loans can be refinanced if you’ve been making payments on time.
