Teaching your teenager how to manage a checking account is essential for their success.
Whether they receive money from a job, chores, or as a gift, ensuring they understand the importance of saving and appropriately spending their earnings will help their financial future.
A TIME TO BUDGET
The first step in helping your child manage their account is making sure they understand the importance of budgeting.
Talk to them about their future goals. Do they want to buy a video game, go on a senior trip, or buy their first car? No matter how big or small the purchase, they must set a reasonable budget. Having a plan to follow sets clear expectations and will help guarantee that they accomplish their goal.
They can create a budgeting plan using a spreadsheet. Have them determine how much money they spend on food, entertainment, savings, and other expenses and log it on the sheet.
A TIME TO SPEND
There is no more incredible feeling than setting a goal, working hard, and achieving it!
Allow your teen to track their progress towards reaching their goal in the following ways: a vision board, checking and savings account transaction history, and setting calendar reminders.
Show them that the world is limitless in the presence of a plan. A plan informs one of what is coming in, what is going out, and how funds will be spent. Spending plans reduce the risks of overspending and increase financial security.
A TIME TO SHARE
When we give cheerfully and share gratefully, everyone is blessed!
Sharing our wealth with others rewards the giver and the receiver.
Teaching your child that giving doesn’t always involve money is a fantastic way to teach them how to give responsibly!
They can give by volunteering at local shelters and donating gently used clothes, furniture, and toys that they have outgrown.
Monetary donations go far, but service with actions goes further.
A TIME FOR A TEEN CHECKING ACCOUNT
Of course, having a good teen checking and savings account makes budgeting, spending, and sharing all the easier. Research teen checking accounts in your area and talk to your child about opening one.
Pelican allows youth members to save money in a dividend-earning account that also pays an additional incentive. That is right! The credit union’s teen accounts pay up to $10 for each A.
Your teen can receive income from their job and from being an outstanding student! They will be motivated to work hard and learn healthy money habits that will go far beyond their years in school with their credit union membership.
A time to budget, a time to spend, a time to share. When teens understand the different decisions they can make with their money, they can become wiser wage earners, savvy spenders, and generous givers in their community!
Once a Pelican State CU member, always a member—through life’s milestones, we’ll always be there to help you with your financial needs. Your Financial Family for Life. Give us a call at 800-351-4877.
