One of the biggest steps towards growing up is getting a heads up about your own finances. Financial management is tough but it can be mastered by understanding the basics and acting upon it. One of the very first things for financial management is to open a bank account. Here are five things, which need to be considered for your teen to make the most of their bank account.
Good interest rates on savings
When your teen opens an account, you need to teach them the art of saving. One of the best ways to do this is to give them a piggy bank as a kid and then ask them to keep saving up on their pocket money as they grow up. You can give them incentives in your own way for saving how much ever they can. Once they get into a habit of learning about interest rates on savings, then they will be very clear about the interest rate concept and would want to keep at least 10% of the money they get for it to increase.
Look out for benefits as well as higher returns on investment
Find a bank which offers good incentives such as travel rewards, cash back on utilities, or rewards on movies. This way your teen will know that saving up more and spending cautiously from the account results in fulfilling needs or basic entertainment options as well.
Avoid incentives that can spoil your child
Incentives such as collaborations with high-end brands or credit cards with minimal fees might end up spoiling your child. In the worst-case scenario, you will be burdened with extra bills in order to make use of these lucrative incentives. Try avoiding a bank account that comes with extremely blingy rewards for teens. As teens have become fashion conscious, most banks have started collaborations with big brands to increase their teen database. Make the best decision for your child and do not fall into this trap.
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Technologically advanced
Today’s average teenager understands the value of technology and wants to keep a tab on all that they are doing through various apps. Inculcating the habit of tracking one’s finances will be beneficial to them. You would need to look for an account, which is technologically ahead and is constantly accessible on the fingertips.
Additional educational resources
Since they are just entering the world of financial enlightenment, it will work well for you to look for an account with free educational resources as well. Your child can then learn about different terms and concepts, which can help them to become more inclined towards healthy habits of managing the finances. It might also inculcate an interest towards the field itself.
Most importantly, you need to find an account, which has representatives that provide great customer service. You also need to teach your children about financial management; they are sure to have doubts and having an expert explain the concept to them would really be helpful.
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