When I asked my parents to tell me about my life skills I wanted to know, I was surprised when my child was asked to learn how to open a bank account.
Likewise, there was a big call as follows.
- How to calculate account budget and balance
- How to write a check and payment method
- And how to start saving for retirement
This article is the first article in a four part series and explains the best way and the easiest way to open a bank account.
This is easy, but as I will cover in this article there are a couple of questions that many people do not think about.
- Which bank?
- A check or savings account?
- Is there a fee or minimum balance?
- Shall I get a debit card as well?
- Should my name be in my child's account?
1. Bank selection
If you choose a bank, there are several criteria to watch:
- Location
- Number of branches
- Ease of access
I opened an account with Elevations Credit Union when I was attending CU Boulder. It was convenient and the credit union is really wonderful to the bank. However, after I graduated and moved, there were no branches around me and it was very inconvenient. I opened an account with US Bank because I am in all of Soopers King I am grocery shopping.
This is particularly important for children. Because children do not want to drive too far in the bank.
Likewise, ease of access to the branch is also important. I have an account of Norwest (now Wells Fargo) and remember getting into and out of the bank parking lot is awful. I had some Near Miss car accident and even fear even going to the bank.
2. Small postage or savings account
In future articles about savings and budgeting, accounts used for savings and investment are needed.
In other words, it is important to have both a checking account and a savings account.
The important reason why checking accounts are important is to learn how to write checks and have designated spending accounts and designated savings accounts.
Verifying your account is important for paying invoices (online or via e-mail). We give the children the chance to learn how to write checks. Even if check payments are not so popular, that is still important.
I was shopping someday and realized that I had forgotten my wallet with my credit card and cash. I needed some food and I got panicked. Fortunately, I could put two checks in the car, write checks and save my own. They are still useful!
3. Fees and minimum balance
Some banks have a fee to hold an account and other banks do not have a fee. Since your child must not have a huge account, get something obviously not so . Likewise, make sure that there is no minimum balance or minimum balance (less than $ 10).
It is as important as the overdraft handling method!
When I was in college, it never failed: my colleagues (who had not learned how to balance accounts) protected the overdraft and accompanied it with a large fee on a daily basis To do.
They watch the balance online and display $ 10. After a few days I checked it again, it was 30 dollars.
It was a magical growth bank account. They have never been surprised where the extra money came from. Until the end of the month overdraft fee of over $ 200!
I am not protected by overdraft and I am sure that I can balance their account (cover in future articles).
4. How about a debit card?
The idea of children having a debit card is as follows. It is much easier to increase the balance of your bank account, but it is much easier to overpay and get into trouble.
Is the ATM machine useful? Yes, but I have never used it in my lifetime. Part of teaching the lifetime skills of a child is to teach them the preparation. I add ten dollars in cash and keep some checks on my car. It will not bother me if it is stolen.
If you decide that your child has received a debit card, wait at least six months after opening the account, then learn the "old-fashioned way" and see what effect the debit card has on the account when actually using the account You can understand whether to give.
5. Do I need to account too?
It is a very good idea to stay in your child's first account and watch out for expenses and not cause train accidents.
It is a good thing to obtain a statement so that you can use it as your learning experience to overcome them with your child and properly dispose of it (shredder) and teach you how to reduce the risk of identity theft.
Please come up with time slots and benchmarks, pull yourself away from your account, and let the child be responsible for each individual account.
Opening a bank account is a huge step to the new world for children and should be a wonderful experience. Walk around your children and find learning opportunities along the way.
