Why setting up a bank account is important for your teen

Last week hubs and I took our son JJ to the bank with us. We were there to set up a new account for our new vehicle, since our vehicle blew up and became unreliable. My son sat in the corner, texting as usual on his phone with his friends when I looked over at him. “Okay it is your turn,” I said to him.  My son looked at me with surprise. That’s when I told him he was about to get his very own bank account.

There are several reasons why hubby and I wanted to set up a bank account for our son. The main one being that in another year he’d be working and would need an account to collect his paycheck, as most businesses pay via direct deposit nowadays. But aside from that, there were many good reasons our teen needed and should have his very own place to put his money.

My son after we just told him it was his turn to get an account.

A Sense of Responsiblity

It is important for a young adult to feel a sense of responsibility over their own lives. Our teens are growing up every day. We give them chores. They have deadlines for homework and curfews to keep. It only makes sense to begin teaching them how to be responsible for their own finances.

Goals to Saving are Important!

Most kids have goals in mind by the time they reach teenagehood. There are things they want, like computers, gaming systems, cell phones, new bikes, or maybe even clothes and shoes to which they want to purchase themselves. Having a bank account and teaching our teens how to save money to help reach their goals is vital towards helping them get what they want. Plus there is a sense of pride that comes from saving and making a purchase themselves.

 

Signing his john henry.

Preparing for a Better Financial Future

Canadians are in debt up the ying yang. It’s true — we love to charge, bill, rack up debt more than most. In our house the motto is if you don’t have the cash to buy it you don’t get it and therefore probably don’t really need it. I want my son to have a great financial future. Not one flagged with bad credit scores, bad debts he can’t pay off and no idea how to save.  Giving your teen a bank account of their own is a great start to helping them achieve a better financial future for success.

Online Purchases

With the Internet ever evolving, so are our banks. TD Bank offers a new TD Visa Debit Card for all cardholders that will link online buying to their bank accounts, allowing buyers to use their bank cards like a prepaid Visa but without the hassles of card fees each time you buy a card. Now my son can make online purchases for items he wants. He can learn about money control, spending, taxes and shipping. An important part of life as he gets older whether personally or in business.

 

The look > hurry up and take the darn picture I know it’s going on your blog LOL

 

JJ was super excited to get his own Youth Account from TD Canada Trust. He set up his own pin. He signed his own name. I saw the look of pride and the “It’s about time” roll of the eyes he gave me after we were done. He put the card in his wallet and was so happy as it made him feel more like an adult.  And that is really what it’s about it.  He’s growing up. He’s making his own decisions. He understands consequences and is expected to make good decisions over his friends, school and life. So why not his money, too!

Have you thought about setting up a bank account for your teen?

[stextbox id=”custom”]This is a personal post written by me. I received no products or compensation for this post. All opinions are 100% my own. [/stextbox]

8 thoughts on “Why setting up a bank account is important for your teen”

  1. We just got my 14 year old teen her first bank account a few weeks ago too! She asked where she could work this summer and I am sure you know that being 14 your choices are limited! So she called the folks over at Niagara This Week to see if they had any routes in our area to deliver flyers and as luck would have it, they did!

    She now has a job with direct deposit (actually, yesterday was her very 1st payday!) and I am teaching her about budgeting her money to last until next payday.

    Thanks for sharing!

    Oh ps: our daughter actually blogs with us but I know the feeling re:pictures for the blog 😉

  2. I agree it is important for kids to learn about money! Mine are too young to have their OWN accounts, however we do have them set up for their post-secondary savings. When they hit 13, we will probably have them open up an everyday account which they can use for saving for their own purchases. My 6year old has his own wallet, and any money he gets (tooth fairy, grandpa etc) goes in it. He LOVES bringing it to the grocery store so he can buy his own treat. He finds it hard that he has to stay within a certain budget, but he is learning

  3. My kids have had a bank account since they were young. Maybe 8 or 9 years old. They get money from my in-laws and aunts and uncles. The girls now work after school babysitting and teaching swimming so now they have 'real' income. Teaching them how to do their own banking is a great skill to have. Good for you and your teen!

  4. I sure did, ever since they were in school. We updated my oldest account when she turned 16 so she could get a debit card and make cheques. She started working part-time and need all of these. She actually deposits most of her gift money she gets in her bank account. She likes using the debit card when she shops.

  5. well I did resp's for them from birth and when my daughter was old enough to work she got a bank account then (at 15). She went to Australia and New Zealand last yr (16) so she got a credit card as well just in case of emergencies. She's 17 now, been working at the same place so long that she has seniority and gets most weekends off. She bought her own car with her money as well as the trip aboard. I think with TD you get a free SPC card (Which saves you 10% off at quite a few places)

    1. Great advice and good for your daughter Bina. That's awesome teaching her so much responsibility she now has financial control over her own life.

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