| The lessons of money management can never begin | | | | regular deposits at various intervals, watching their |
| soon enough, and childhood is a great time to start. | | | | money grow over time and gaining an understanding |
| You can teach your children the right and the wrong | | | | of how interest rates work. To open up a checking |
| way to manage money using concepts they already | | | | account for your child you will usually have to cosign |
| understand. It can be a fun experience for both of | | | | for them, and the minimum allowable age is 16. At |
| you and can start them off early on developing | | | | this age your teenager is already experiencing the |
| sound financial habits that will follow them for the | | | | wonderful benefits money can confer; he or she may |
| rest of their lives. | | | | even be employed on a part time or full time basis. |
| Many banks offer easy to understand savings | | | | They can begin managing their own money using |
| programs targeted to children and teens which will | | | | these accounts until they are 18, at which time they |
| help them learn sound principles in money | | | | can remove you as a signatory to the account and |
| management. These programs are entertaining and | | | | have complete ownership. Hopefully in that two year |
| teeming with incentives to make young people want | | | | interval they will have learned enough money lessons |
| to learn how to handle their money early on. Banks | | | | to make wise decisions with their finances. |
| do this because they understand it's in their best | | | | After the fun part of opening the account and |
| interest to train young people to become credit | | | | choosing the best check designs from an array of |
| worthy adults later on when opening up accounts in | | | | options, it will be time to begin the hard work of |
| their financial institutions. | | | | helping your child balance their checkbook. This is |
| These programs for young people go by various | | | | where accounting comes in. Show them how to |
| names, like a Savings Safari. They work by | | | | properly read a bank statement and learn how to |
| encouraging young people to set certain financial | | | | reconcile how much they think is in their account with |
| goals in their accounts, and when that is done, these | | | | what is actually there. It should be an eye-opening |
| children win certificates which they can redeem for | | | | experience, to say the least. |
| cash or prizes. Some programs also reward young | | | | Paper checks might seem somewhat passé in |
| people with stamps for every deposit made into an | | | | this age of electronic money transfers and you may |
| account, and these stamps can be exchanged for | | | | be tempted to skip over this important phase of |
| prizes later on. As they learn these skills early on, | | | | your education. However, stick with it. If your young |
| these young people can be trusted to open their | | | | person cannot properly reconcile their finances on |
| own checking account when they are of age. | | | | paper it's unlikely they will manage digital transactions |
| You can use checking and savings accounts to begin | | | | any better. There is something about physically |
| an early education and introduction to the full range | | | | writing amounts down on paper that gives you a |
| of money management options available to the | | | | clearer grasp of how much money is going in and |
| consumers today and a broader understanding of our | | | | how much is going out. Encourage them to use |
| financial system. This can begin with an easy | | | | checks to buy things they would normally pay for in |
| introduction to how the banks work in concert with | | | | cash, such as books, clothes, etc. They will learn the |
| the Federal Reserve System and how to use other | | | | value of a budget and will live within their means. It |
| money instruments and tools such as debit cards, | | | | will also be easier for them to save for college when |
| certificates of deposit, ATM machines, investments | | | | they see it all on paper, in plain black and white. |
| and simple accounting principles. | | | | Begin now to teach your young person proper |
| After having developed a clear understanding of | | | | money management skills. It really is never too early |
| proper money management through savings, begin | | | | to start. You will teach them basic common sense |
| by opening up a checking account so that your | | | | along them way, and help them build a good credit |
| young person can develop hands on experience. | | | | history for the rest of their life. |
| They can save their weekly allowance and make | | | | |