Arizona Tribune - 5 Checking Account Habits Kids Should Learn Early

But where should you start with your kids? Let's walk through five helpful habits to build for kids who are just starting their checking accounts.

Keep track of spending

Checking your bank account regularly might feel routine as an adult, but your kids might not know how much they're spending with their new checking account. Regularly checking their transaction history can help kids stay on top of their balance as they start their personal finance journeys.

Be aware of bank fees

Many bank accounts for kids are more lenient with fees, but some may still apply. For example, spending more than the limit in your balance will likely still result in an overdraft fee, even on a student bank account.

Telling your kids about the fees specific to their accounts and making sure they know about the fees that come with non-student accounts later in life will help them manage their finances better now and in the future.

Set up account alerts

It's easy for kids to forget how much they're spending. Setting up notifications that can be sent to their email or smartphone can help remind them. Learning how quickly you go through your balance takes time, and alerts on your account can accelerate your child's learning process.

Plus, these alerts help avoid over-drafting the account and save your child's money.

Learning to transfer money

Building good habits for saving money is essential for every young person's financial journey. Developing a routine for transferring money from the checking to the savings account is a beneficial way to have your child start saving money. As they reach adulthood, they'll thank you for helping them save in their youth.

You might want to consider setting up automatic transfers from their checking to their savings account if they're old enough to earn regular income. Teaching them to put away a portion of their paycheck automatically will remain useful as they grow older.

Reviewing the statement

At the end of the month, ask your child to look at their bank statement. Teach them about budgeting and see where they can save the following month. Analyzing the monthly statement will help your kids understand limiting unnecessary expenses and help them manage their spending as they add responsibilities later in life.

Also, they could potentially see activity on their account that isn't theirs. Personal banking security is an important aspect of managing finances, and scanning your statement for unauthorized activity can be a nice teaching moment for your kids about the importance of financial privacy.

Setting the table for adulthood

Starting these habits with a student checking account will help your child prepare for greater responsibilities and more complex banking concepts as they enter adulthood. Learning to track spending, set limits and put funds into savings will provide a solid baseline understanding of what it means to be responsible with money

As they go to take out loans and apply for credit cards later in life, these basic understandings of value and limits can help them avoid debt and build credit. The earlier they start understanding these concepts, the brighter their financial outlook later in life.

Disclaimer: Article content is intended for information only. It may not reflect the publisher nor employees' views. Consult a financial professional before making financial decisions. Publishers or platforms may be compensated for access to third party websites.

CONTACT:

Sonakshi Murze
Manager
[email protected]

SOURCE: iQuanti

View the original press release on ACCESS Newswire

A.Clark--AT