Teaching Your Teen Checking Account Basics

Authored By: FiCare FCU on 1/3/2019

Teaching Your Teen Money Management: Checking Account Basics


Now that your teen has learned to save and build a budget, the next important step is learning how to manage a checking account. Your teen may already have a savings account, but federal law limits withdrawals from a savings account. A checking will allow them to make more transactions.


Research the Best Options

Help them choose the right checking account. Below are some things you can look for when selecting a checking account.


Avoiding Fees

Even free checking accounts have some fees. When your teen opens an account, review the Fee Schedule with them. Explain to them the different fees and how to avoid them. Below are some of the most common fees that apply to a checking account.

Monthly service charges. If the checking account is not free, monthly service or maintenance fees may apply when the checking account does not maintain the required balance or direct deposits.

Overdraft fees. These costly fees are charged when your teen tries to spend more money than is available in the account.

ATM fees. These fees are charged when using another bank's or credit union's ATM.


Managing a Checking Account

Step 1: Show your teen how to keep a record of their deposits and withdrawals and calculate the balance. They can do this in a good old-fashioned transaction register booklet. Write the transaction in the booklet right away or teach them to save receipts from their transactions and record them in the transaction register when they get home. They can avoid the paper by using a transaction register app on their phone.

Step 2: Every few days, review the account with them using online or mobile banking. Compare this to what is in the transaction register. When doing this your teen may notice that the balance in Online Banking does not always reflect what is available in the transaction register because of debit card holds, outstanding checks, scheduled recurring payments, tips, and holds on checks they have deposited.

Step 3: When their monthly statement arrives, sit down and review the transactions. Use the monthly statement to update their budget so they can see how much they really spend. If you find any suspicious transactions, help your teen report them immediately.


Why Choose a FiCare Teen Checking Account



Your teen can open a checking account and receive a debit card at the age of 14. If your teen is under 18, a parent is required to be a joint owner on the account. As a joint owner, you have the ability to monitor and access the account. Our accounts offer Online Banking, Mobile Banking, and Text Banking.



FiCare Teen Checking accounts have no monthly service charge, no minimum or maximum balance requirements, and no direct deposit requirements.



The account can be accessed for free anywhere around the country using shared branch services. Your teen can also withdraw free at over 1,200 ATMs using FiCare ATMs and any Presto! ATM found at your neighborhood Publix store.

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