What is the Best Teen Checking Account?

One of the most important life skills is knowing how to save money. Opening a teen checking account for your child when they’re young is a great way to teach them how to save and spend money.

If you are a parent of a teen or are a teenager yourself, you may be wondering what is the Best Teen Checking Account? Be sure to keep reading to learn what the best teen checking accounts are and advice for money management for teens.

Checking Accounts for Teens

Paper checks are not nearly as popular as they were in the past, however a checking account is still useful for teenagers because they can get a debit card to make any purchases they need.

However, be sure to note that it is possible to overdraw your account if you spend more than you have. This is why it’s important to teach your teens to keep track of their account balance.

If you are worried about overdraft fees, overdraft protection could be an option that you want to take a look at. It allows you to keep using your debit card even after you run out of money in your account. However, each transaction comes with a fee, which can get expensive.

Another option is to simply have the card declined so that you can avoid the fee. To stop your overdraft protection, simply contact your bank to discuss the issue. Additionally, linking your account to a savings account or credit card lets the bank transfer funds when your checking account balance is low. Furthermore, the fees for this are usually much lower than an overdraft fee.

Teaching Teens How to Save Money

It is important to assess your teen’s situation before opening an account. For instance, do they have an allowance or a job? Do you plan on putting a percentage of their income into a savings account that limits how much they are allowed to spend?

Even though it can be rather easy to spend money when you have a debit card, it can also help you keep track of your expenses more easily than you would be able to with cash. At the end of each month, you might be questioning where all your money went, so having a list of all your expenses made on that card will help answer that question.

Best Ways to Save Money With a Checking Account

Now that you’ve decided that you want to open up an account for your teen, you may be wondering what you should look for in an account.

• Minimum balance: Some banks charge a fee if your account balance falls below a certain amount. This is important to consider especially if your teen doesn’t have a lot saved up.
• Fees: Make sure you check what fees are associated with the checking account. Low balance fees, ATM usage fees, overdraft protection and many others can greatly reduce your earnings.
• Interest rates: Interest rates on checking accounts are all generally very low, so you shouldn’t focus too much on this. Although they are somewhat higher, interest rates on savings accounts are still very low, being generally around 1%.

Author’s Verdict

Money management is a crucial skill to have so it’s important to start teaching your teens young. By opening a checking account for them, they will be able to learn how to save, spend, keep track of their expenses, and more.

In addition, we have a list of bank promotions to get some extra cash in your pockets today. These promotions also include some great bonuses for new youth/teen checking accounts that I recommend you check out.

TD Bank Promotions: $200, $300, $500 Checking, Savings, Business Bonuses 2024

Huntington Bank Bonuses & Promotions: $100, $400, $1,000 Checking Offers 2024

U.S. Bank Promotions 2024: $400, $450, $900 Personal Checking & Business Bonuses

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