Setting up Saving and Spending Accounts for Teens

Teenagers seem to have a good handle on how to spend, especially other people’s money. But it is our job to teach them to save and spend their “own” money. It’s time to introduce a savings account.

From birth until the end of elementary school a piggy bank is all your child needs to learn the concept of protecting the money they saved. Now they are in Jr. High, receiving a larger allowance and need a safer place to keep their cash, a savings account.

Take your child to the local bank and help them open up their savings account. Explain to them that this account replaces their piggy bank. They should keep a record of their deposits and withdrawals so they always know what their balance is. In addition, at the end of each month, they may even earn some interest on their deposits. Teach your child that this savings account is where they go to deposit their allowance or money from other resources. When they want to buy something they come to this savings account to make their withdrawals.

This is a very important step in introducing the banking system because soon enough they will transition to a checking account and need to know where that money is coming from when they write a check out.

Save your coins, Susie Saver

P.S. Email Susie and tell her what you want to learn about at: susan@susiesaverbooks.com

Financial planning lessons are posted two times a month. Next lesson on, “Going to College- What to share with them before they leave the nest”