preteens standing outside in a circle looking at their cellphones

Checking Accounts for Teens

5 Reasons Your Teen Should Have a Checking Account


We know that when children grow up learning to make smart financial decisions, they feel empowered to take charge of their financial future. At Flatwater Bank, we encourage the transition of teens to go beyond learning to save money; they also need to know how to earn and spend money responsibly. If your teen is working a part-time job and earning money, there is no better time than under the guidance of a parent or guardian to start learning to manage their hard-earned money.

Here are 5 reasons to open a checking account for your teen:
1. It teaches them about working, saving, and growing their money.
If your young adult chooses to take the responsibility of having a job, they should be able to manage the money that comes from their efforts. Many teens are used to their parents funding their needs and wants. As your child sees their hard-earned money building, they are more likely to contemplate whether spending that extra money on fast food or coffee is really worth it. A teen checking account with a debit card and digital access to their account allows them to keep track of their transactions.

2. Your teen gets independence - when the stakes are low.
Let’s face it. Teens crave independence. A checking account in their name, but with your oversight, means you can keep an eye on their account activity. If your teen is having trouble managing their account or developing potentially harmful money habits, you can coach them up. Would you rather your teen blow their first paycheck from their summer job or spend all their post-grad income and not have money to pay rent? We hope neither happens, but now is the ideal time to transition your child to managing their own money, under your watchful eye.

3. A checking account keeps their money safer.
As your teen becomes more independent, they will likely be needing access to money without a parent or guardian with them. A checking account with a debit card is a safe way to allow your teen access to spending money. In the event a debit card is misplaced or stolen, your teen can disable it with their phone by accessing their mobile banking app. There is peace of mind knowing their money is protected even if a debit card is lost, unlike lost or stolen cash.

4. It allows you to monitor their spending.
With mobile banking apps, shopping habits don’t need to go unnoticed. All you need to do is set up alerts within the Flatwater Bank mobile app and you’ll be able to help keep track of good and bad spending habits at an early age.

5. It helps establish their financial history.
Everyone’s financial journey starts somewhere. By opening a teen checking account, you are helping them establish the building blocks of their financial history. Although the checking account does not directly impact their credit score, it allows you to teach financial responsibility and good money habits. This can help stave off bad habits now that can derail them (and their credit) as adults.

If you are wanting to help your teenager open their own bank account with a debit card, we can help. Get in touch with us and we can assist your young adult with establishing a strong and sensible financial future.