Back to School Checklist: Setting Up Your Teen For Financial Success
Back-to-school season is one of the busiest times of the year for families. Beyond shopping for school supplies, it’s also an ideal time to introduce older children to the basics of banking. Whether that means opening a supervised checking account or learning how to set up a budget, Origin Bank is here to help you bolster your student’s financial literacy so they’ll be ready for financial independence. Here’s how you can get started:
● Encourage them to find a part-time job. Between homework and extracurriculars, school means kids are busy. However, if they can find a few spare hours for a low-stakes, part-time job, it can help them understand the value of employment. Whether they mow the neighbor’s lawn, pick up a few shifts at the local coffee shop, or start a weekend babysitting business, encourage kids to earn some pocket money – then teach them how to save it.
● Reinforce healthy financial habits. Whether they have a part-time job or a small weekly allowance, teaching them how to save money is invaluable. At this stage, you can begin to talk to your kids about expenses and budgeting so they can learn how money is earned and spent. Help them set goals and let them see the time and work needed to meet those goals so they can enjoy the satisfaction of achievement.
● Teach them how to fill out checks. While mobile banking and digital payment platforms like Venmo®, Zelle®, and Cash App® are more popular than ever, there are still times when kids need to do things the analog way. From the memo line to payment info, teaching kids how to fill out a check is an essential skill, especially when it comes time to pay for rent and utilities down the line. To help them practice, print out check-writing worksheets or go all in on a financial literacy workbook.
● Explain the difference between credit and debit cards. As card usage rises, kids need to understand that not all cards are created equal. While a debit card draws from real money in your account, a credit card is money borrowed with interest. Both have benefits when used responsibly, but you need to instill healthy financial habits early to steer clear of debt trouble later on.
● Open an Origin Bank checking account. Origin Bank’s Simple Checking Account is easy to set up and offers great value. By maintaining a minimum daily balance of $500.00, you can skip the $8 monthly service charge and encourage your kids to save. This starter checking account comes with the entire Origin experience – mobile banking, mobile deposits, and mobile payment capabilities, along with 24/7 customer support and personal bankers available to assist with individual financial needs. (Note that minors will need to have an adult with them to sign on the account, and the minor’s parent or legal guardian will need to sign a form to certify the child’s social security number.)
Kids who learn about banking early become money-wise adults, and parents play a vital role in that process. By introducing your kids to checking accounts, not only will they gain firsthand experience with basic financial literacy, they’ll have your valued guidance along the way. Visit Origin.Bank to learn more, or stop by one of our convenient banking center locations with your child. Let our team of trusted advisors get them started on the road to good financial health.