Lone Star National Bank
How a Checking or Youth Account Can Help Your Child Become a Financially Responsible Adult
Mar 31, 2017
Many adults these days would probably agree that teaching today’s youth to be financially responsible is something that all parents should instill in their children. Many kids of all ages go through their youth without knowing how to balance their finances and spend only when absolutely necessary. If you’re a parent that doesn’t want for their child to experience empty bank accounts or poor credit scores, then our Youth Accounts can certainly help.
This is the age group that is all about visuals. Using a clear jar to save up some spare change is a great idea to help teach your kids about the importance of saving up money. A jar is a perfect tool since it clearly allows them to see the progress they’re making in their saving adventure.
Slowly but surely, that jar will fill up and you’ll see firsthand how exciting it can be for them! Remember, this is the perfect time to be that great person who sets the example. Your child will be watching your every move. If you don’t think twice about using a debit card or withdrawing money, they won’t either.
“Tweens” are kids between the ages of 8 and 14. Start by teaching this group the concept of opportunity cost. This can involve a simple conversation that goes along like this, “If you buy a smartphone, you won’t have money for those shoes you wanted.” This will help them weigh the pros and cons of one decision over the other.
It’s important to give as well, not just to receive. Consider setting time aside and teaching them about giving back. Maybe they can choose a church, nonprofit or charity to help out. This will instill a sense of true value. They’ll see that money is not the most important thing in life.
If your teenager is ready to take money management to the next level, give them the big responsibility of owning their own bank account. Our checking accounts are perfect for students and youngsters looking to gain financial awareness.
Having a part-time job during the school year or a full-time one during the summer can help them gain the financial footing they need to truly experience what it means to balance their finances. Another important lesson to teach them is the importance of credit card management. Once they head off to college, finances will be tight. It’s important that they know that a credit card is a luxury, not a necessity. It’s a tool that should only be used sparingly and in emergencies only.
Helping Your Child Become Financially Responsible
Great money-management skills start with parents. If you teach your children that being responsible with money is extremely important, it’ll be a lesson they’ll forever remember. Our bank in McAllen understands the importance of healthy spending habits. Stop on by or contact us today to help get your child started on the right foot with their finances.