It’s important for teens to enter adulthood with basic knowledge behind personal financing. A common mistake amongst teens is not fully understanding the proper terms behind finance products and services or the correct steps to take to use these banking products. As a parent or guarding, providing your teen with the right information about their options can help them to make better individual choices. Follow these helpful tips on how to teach your teen to enhance their personal finances.
Savings vs. Checking Accounts
Setting your teen up with the right account from the beginning is crucial. Sitting down and learning about their financial goals is key to choosing the right account. Explain how savings accounts are designed for minimal access while checking accounts are outlined for regular spending. Teens should learn the value of setting money aside for future fiances instead of spending their paychecks all at once.
A bonus for having a checking account is that teens enter the world of responsibility with a debit card. Make sure you explain the value of the card and when or where they should or shouldn’t use it. Stress the importance of security and saving with a debit card.
Budget With a Positive Attitude
Budgeting can be a perfect to demonstrate the importance behind money. Having your teen keep track of their finances through apps or online banking can benefit their financial management skills. Encourage your teen to set aside a consistent amount of the money that they earn. Show them examples of future bills that they will one day have to pay so that they can form positive habits from a young age.
Choose Your Local Credit Union
A credit union is a not-for-profit organization paying back their members through higher saving rates and lower loan rates. Providing their members with safe and reasonable price to take out a loan can come in handy when making those first life-changing purchases like their first car or putting a deposit down on an apartment.
RELATED: What is a Credit Union?
Open an Account with Metro North Financial Credit Union!
Whether you need to set up an account or take out a loan, Metro North Financial Credit Union is here to help! A helpful feature that MNFCU offers members is online banking – perfect for teens with smartphones. This feature gives you 24/7 access to account information wherever you are!