Advantages of Student Bank Accounts

Author: BankFeeInsider.com     Thursday, September 11, 2014 12:00 AM

Most parents want to teach their children how to manage their money. This adult skill will serve them well in the future. Without basic money management skills, your child may always be broke no matter how much money he or she earns in a future career. One very effective tool that you can use to help your child develop essential money management skills is a student bank account.

Advantages of Student Bank Accounts

Consider some advantages of helping your son or daughter open a bank account before he leaves home:

  • Learning the basics of opening and using a bank account
  • Developing money management skills

The Basics of Student Accounts

Many good banks offer free accounts for students under 18 years old, and some of them even extend these courtesy accounts to college students. Your child should learn how to visit the bank and ask for assistance, use a debit card to make deposits and withdrawals, and even login to see a bank balance online. These may seem like simple tasks to you, but they will all be new to your son or daughter who has never handled a bank account before.

One good think about student bank accounts is that they can get attached to your account. You will be able to monitor the balance and see how much your child spends. Also, even though you can see your child's account, he cannot see yours.

Teaching Money Management Skills to Students

Learning the basics of setting up an account, using a debit card, and logging into to an online bank website might be fairly simple to master. Unfortunately, many adults have still not mastered the basics of managing their money. By allowing your child to set up a bank account while you can still provide supervision, you can ensure that he or she knows how to manage money when you are not around to check up on things.

Teach Your Child That A Bank Account is a Privilege

Emphasize the fact that owning a bank account is a privilege and not a right. You know that you can lose your own account if you mismanage it too badly, and your child should understand that you expect him to keep the balance positive and set some money aside for savings. These lessons will serve your older child well long after he goes off on his own when you are not around to supervise any more.

 

Source: BFI