When I opened savings accounts for each of my children, I knew it was a good step. You can’t go wrong teaching your child how to save. But when it comes to checking accounts for children I haven’t been so sure. Does my child really need a checking account to spend their money?
Through experience with my four kids, I’ve determined a young child doesn’t need a checking account. They can store their spending money in cash at home. That way they have easy access to it. And spending cash for a kid is just plain fun.
A teenager, however, does need a checking account. Maybe not right away when they turn 13. But at some point before they leave for college, they should open one up.
I’m writing this today, because we just opened a checking account this past weekend for my oldest daughter. She is 16. She has her license so often is behind the wheel taking our other kids to and fro. And increasingly she is out with friends to ballgames, movies or whatever else takes teens away from the home.
So it seemed right that now was the time to give her more access to her money. In essence, that is what a checking account does. You write checks or use a debit card linked to the account for purchases. Those forms of payment replace the use of cash at the checkout register. So no more carrying large amounts of cash in your wallet or purse in order to buy things.
So obviously there is convenience and security in using checks and debit cards for transactions. However, there are at least 3 more reasons teens need a checking account. And I want to make sure all four of my kids get these right before they leave home.