If one of your kids is working, for a paycheck, for the first time, you may be tempted to deposit his paychecks in your banking account. This probably won't sit very well with your kid. He will think that he should be able to spend his money any way he sees fit. He is probably going to prefer cashing his checks each week. This could be a golden opportunity for you and your child to have a conversation about the responsibilities associated with money. You might explain the reasons a checking account Asheville NC banks can open is a good idea for him.
It might be hard at first for your youngster to understand why he should let a stranger keep his money. Check writing may be a foreign concept to him. He probably doesn't think he will even need to know how to fill one out. It is up to you, as the adult, to explain why these accounts are important, the different kinds there are, and how much it costs to have one. The financial lessons you teach your child today will benefit him later in life.
Safety and convenience are the two biggest benefits to banking accounts. You can point out how dangerous it can be to carry a large sum of cash around with you. Most thieves know when it's payday. Kids who have just cashed their paychecks are easy targets.
You have easy access to money when you want it by using an ATM or going to the bank and withdrawing funds. You can even write a personal check. At some point you will want to borrow money, to buy a car perhaps. To do that you will need a bank account.
Banking online is fast, safe, and easy. If he wants to know how much money he has in the bank, he can go online and look. He can pay any bills he has electronically.
If the company he is working for has direct deposit, he can sign up and have his money automatically transferred on payday. He won't have the hassle of waiting in line at the bank to physically deposit the money. Even if someone robs the bank, he won't have to worry that his money is safe. The federal government, in the form of the FDIC, insures it.
Banks offer different kinds of accounts to accommodate the different needs of their customers. If your kid maintains a certain balance, he won't be charged for his transactions. Accounts can be opened online. A lot of people prefer this because they can transact all their business online no matter where they are or what time it is. Many banks offer students accounts. These are specifically geared toward young people. They normally offer free checking without a minimum balance.
You also need to explain how your child can avoid paying fees, as much as possible. You need to stress how expensive it is to overdraw and have a negative balance. The minimum balance can be important too if the bank charges a fee when he falls under it.
It might be hard at first for your youngster to understand why he should let a stranger keep his money. Check writing may be a foreign concept to him. He probably doesn't think he will even need to know how to fill one out. It is up to you, as the adult, to explain why these accounts are important, the different kinds there are, and how much it costs to have one. The financial lessons you teach your child today will benefit him later in life.
Safety and convenience are the two biggest benefits to banking accounts. You can point out how dangerous it can be to carry a large sum of cash around with you. Most thieves know when it's payday. Kids who have just cashed their paychecks are easy targets.
You have easy access to money when you want it by using an ATM or going to the bank and withdrawing funds. You can even write a personal check. At some point you will want to borrow money, to buy a car perhaps. To do that you will need a bank account.
Banking online is fast, safe, and easy. If he wants to know how much money he has in the bank, he can go online and look. He can pay any bills he has electronically.
If the company he is working for has direct deposit, he can sign up and have his money automatically transferred on payday. He won't have the hassle of waiting in line at the bank to physically deposit the money. Even if someone robs the bank, he won't have to worry that his money is safe. The federal government, in the form of the FDIC, insures it.
Banks offer different kinds of accounts to accommodate the different needs of their customers. If your kid maintains a certain balance, he won't be charged for his transactions. Accounts can be opened online. A lot of people prefer this because they can transact all their business online no matter where they are or what time it is. Many banks offer students accounts. These are specifically geared toward young people. They normally offer free checking without a minimum balance.
You also need to explain how your child can avoid paying fees, as much as possible. You need to stress how expensive it is to overdraw and have a negative balance. The minimum balance can be important too if the bank charges a fee when he falls under it.
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