I wonder after I ask my father and mother to let me know the existence they want their children to know, and the children have a powerful request to find ways to open a bank account.
Similarly, it has a big name:
How to consolidate accounts?
How to write exams and pay
And the way to start saving for retirement
It seems that many of the things we take for granted are, ultimately, missing from what we read to children.
This article is the first article in a 4-part collection and can talk about the most unusual and most effective way to get started by opening a bank account.
It sounds smooth, but most human beings do not in any way consider what we will address in this newsletter:
What financial institution?
Check or financial savings account?
Are there any fees or minimum balances?
Should I Get a Debit Card?
Do I even have my name on the account with my kid?
1. Selecting a bank
When you choose a financial institution, there are a few criteria you should consider:
Number of branches
Getting the right to entry is easy
Your home nearby should be helpful, but there are additional branches – so that in case of an emergency – you can reach out to your financial institution.
After I attended CU Boulder, I opened an account at Elevations Credit Union. It has become convenient and credit unions are truly excellent for the financial institution. However, when I graduated, there were no branches around me, which was very uncomfortable. I opened an account with US Bank, and they are in almost every King Supers where I do my grocery shopping.
This is especially important with children because they do not want you to walk a certain distance to the bank.
Similarly, ease of entry into the section is essential. I have a Norwest (now Wells Fargo) account, and getting into and out of the bank car parking zone became awful. I had many vehicle accidents near me and was also scared to go to the bank.
2. Checking or Savings Account
If you are considering roughly saving and budgeting in the Destiny article, there should be an account that can be used to save and earn an investment.
It is essential to have both a checking and a savings account.
The purpose of a checking account is so important that children are able to find ways to write assessments and have a selected spending account rather than a designated financial savings account.
Checking the amount of money to pay is very important to pay the bills (be it online or through the mail) and gives young people the opportunity to learn how to write expectations. While writing may not always be as regular as it once was, it is critical.
I bought it one day and forgot my wallets with credit cards and cash. I needed some food so I started to panic. Fortunately, I preserve more than one test inside the vehicle and I am able to store myself by writing a test … they still come in handy!
Three. Fees & Minimum Balances
Some banks have fees for having an account and some banks do not. Get your child a reason not to have a huge account. Similarly make sure there is no minimum balance or a completely small ($ 10 or less) minimum balance.
This is just as important as how overdrafts are handled!
When I entered college, it never failed: my friends (who don’t find a way to balance the account) routinely contribute to their overdraft security and the high prices that go with it.
They can see their consistency online and it is $ 10. A few days later they tested it again and it was changed to $ 30.
It became a spiritually growing bank account; And they never questioned where the extra money came from. From exiting the month with an overdraft security fee of more than $ 200!
I justify not getting overdraft protection, and alternatively the hole is positive so they are able to balance their account (which we’ll cover in the article on duty).
Four. What about a debit card?
Here’s my mind on young people who have debit playing cards: it’s great, and it’s tough to balance a financial company account, as well as spending too much and getting in trouble.
Are ATM Machines Easy? Yes, but as soon as I use one of my entire existence. Part of coaching children’s abilities is to train them to be ready. I also carry out some tests on my vehicle along with an additional $ 10 cash. It would not bother me if it was stolen.
If you decide that your child will receive a debit card, wait at least six months after opening their account so they can examine the “old school method” and find out how the debit card affects their account.