Money management is instrumental in the life of every adult. Thus, parents need to help children learn how to build a solid economic foundation at an early age. One of the most effective ways to do this is by opening a checking account at Estacado FCU on your teen’s behalf (Teens under 18 MUST have an adult on the account). The guide below explores how this will provide them with a better understanding of the true value of money and make them accountable for their own financial choices.

3 Ways Your Teen Can Benefit From Opening a Checking Account 

1. Teach Them About Tracking Expenses & Budgeting

Most children don’t give a second thought as to finances, especially if you are still providing them with funds for new clothes or evenings out with friends. However, continuing down this path can create serious problems in adulthood. By giving them a checking account with a limited amount of money to spend, it will get your teenager out of the habit of making impulse purchases and help them become more aware of where their money is going.

2. Gives Them a Place to Deposit Their Own Funds

Additionally, teens who have their own job can use a checking account (with their parent or guardian) as a repository for their paychecks. This is not only more practical than receiving cash or a check, but is sometimes a requirement. Furthermore, seeing how much they can accumulate in their checking account is motivation for a teenager to keep earning and saving money. This will inspire them to set economic goals and think about the bigger picture in terms of how successful they can become if they continue to remain in control over their finances. They will also be more inclined to stay out of debt and not let money evolve into a major source of stress in their adult life. Teens can use Touch Banking from Estacado to view balances and activity on their cell phones anytime for free.

3. Promote Independence 

Teenagers are only a few years away from adulthood. As such, this is the time for them to gradually start gaining more and more independence over this aspect of their life so they know what to do after they leave home. With a joint checking account with an adult, they not only have access to a card, which they may need for making online purchases, but also confidence in their own financial abilities. Once they turn 18, they may choose wither to keep their parent or guardian on their account.  

If you are looking for a reputable financial institution you can partner with to help educate your teenager on money management, contact Estacado Federal Credit Union. They have a long-standing history of providing customers of all ages with exceptional banking services. Students throughout Lea County, NM, and the Texas counties of Yoakum, Gaines, and Cochran have relied on the staff’s knowledge and expertise to guide them in the process of opening their first checking account. Call (575) 393-1596 to speak with a friendly representative or visit their website for more information on becoming a member. 

Estacado Federal Credit Union – Where you are more than a number, you’re a Member!