Posted January 11, 2022 in Banking Tips
Tips for Parents on Teen Banking Education
When a teenager takes the leap toward owning their finances, it can be a big step for parents too.
Becoming financially independent is a process. It requires a bit of a lifestyle change as well as an educational adjustment for teens on understanding and working with their finances.
Importance of Financial Education
Your teen isn’t going to know how to track their spending, budget, or even save money. As a parent, you know your child best, and can understand what they need to work on to improve their financial wellbeing and be successful in life.
To help, here are financial tips to support your kid on their journey to managing money independently.
Why Open a Checking Account
The best way to begin is by helping them open their first checking account at a bank. Doing this helps your teenager learn very valuable skills and financial responsibility for managing money.
Before signing up for any bank account, it helps to do your research. Every checking account is different. Look for banks that offer mobile banking options and parental controls like text alerts to keep tabs on their spending habits.
With Security First Bank, you’re able to open a bank account for your teen and manage funds together. Your teen will get a checking account with personal banking services and a Debit/ATM card. With mobile banking, you can help them manage their finances on the go.
Visit our teen banking services to learn more about opening an account for your teen!
Benefits of Budgeting & Financial Literacy
After developing an understanding of a checking account and how to use it, your teen is ready to understand how expenses for food, transportation, and more can add up.
So, get out those calculators and begin budgeting!
Setting up a budget has obvious long-term benefits. Some folks even in their late 20s and 30s are under the impression that money rules them and not the other way around.
It’s empowering to give teens control over their funds with a budget. Try the 50/20/30 rule to determine a monthly budget.
Here’s how it works:
- 50% of the budget goes to needs (food, transportation)
- 20% of the budget goes to wants (shopping trips, luxury items)
- 30% of the budget goes to a bank account
This approach is a very simple way to look at earnings on a monthly basis while building up savings.
Banzai Financial Literacy Courses Available
To reinforce their budgeting habits further, take a Banzai financial literacy course. This program uses real-life scenarios to teach teens concepts like budgeting, money management, insurance, credit, and more!
Security First Bank is a sponsor of the Banzai program taught in local high schools. Courses include options for Banzai juniors (ages 8-12), teens (ages 13-18), and adults. The courses are available to our customers for free.
We hope these tips help your teen on the road to becoming financially stable and independent!