by Emily Hechler 
Teenagers are expensive. Even though I don’t have my own kids, I’m well aware that I was expensive to raise. Then, as I got older, my interests became more expensive. When your teen hits 16, the doors for part-time jobs swing open. What’s a parent to do?
Opening a teen checking account comes with many benefits for you and your not-so-little kid. These benefits can make an impact now and in the future.
Before you run to Alltru to open a StepOne teen checking account, encourage your teen to do a little learning beforehand. Opening a checking account comes with a lot of responsibility. If you need to set some boundaries in place, establish those ahead of time with your teen. That way, you are on the same page and your teen doesn’t spend their money out of spite toward you.
Your teen will get a debit card. With so many online shopping opportunities, your teen has likely asked for your card a few times. Now that your teens have their own, they no longer need yours to make online purchases. This also gives them a taste of spending digital money.
Your teen’s money will be separate from yours. When your teen gets a job, it’s not acceptable to keep yours and your teen’s money in one account. If your teen makes enough money to file taxes, sharing an account will create a mess and have consequences for you both. When your teen opens a StepOne checking account, you can have confidence where their money is going with direct deposit and know that they don’t have access to your hard-earned funds either.
Your teen can establish a strong financial reputation. Simply having a checking account and debit card won’t establish a credit score for your teen. However, many lenders will request bank account information when they apply for a loan or open a credit card in the future. Teens who manage their money wisely will stand out on these applications. In contrast, if they don’t have access to checking or savings accounts, it could lead to higher interest rates due to the lack of evidence that they can manage money effectively.
Your teen can establish a strong financial reputation. Having just a checking account and debit card won’t give your teen a credit score. However, many lenders will ask for bank account information when they try to open a credit card later. Teens who manage their money well can be easily spotted on these applications. Compare that to an account that the teen didn’t have access to. That could mean higher interest rates because of the lack of evidence that your teen can manage money well.
Kids grow up quickly, especially when they become teens with jobs and their own paychecks. While they still have you as a safety net, that won’t always be the case. Opening a StepOne teen checking account can have benefits for your teen for years to come. If they have questions about their account or other financial opportunities that may arise when they are older, they can always come to Alltru for advice and the accessible products they need to achieve financial independence.
