Teens And Finances: 4 Reasons You Should Have Access To Your Teen’s Bank Accounts
When my son got his first part-time job, we opened both a checking and savings account for him. Since he’s a teenager, the bank required an adult be added as a secondary signer on the accounts. I added myself, which allows his accounts to be visible within my login to our bank’s online portal.
Having access to my son’s accounts through the bank’s online tools has proven to be beneficial in many ways.
Monitor Spending
With the click of a few buttons, I can view the transaction history of his accounts. I can see what he’s spending his money on, and how much his expenditures are. I’ve questioned him on a purchase several times, but for each of those instances he’s had a valid answer. He knows I’m keeping an eye on him.
Check Balance
Managing his finances through the use of a debit card attached to a checking account is still a fairly new concept for my son. It’s entirely possible that he may slip up and overdraw his account. I check his balance each day and make sure he’s aware when his balance is getting low.
Ensure Saving
We have an agreement that a certain amount of each paycheck is automatically transferred to his savings account. He has the ability to cancel those transactions, as well as transfer money from his savings back to his checking. Those actions are not acceptable unless previous discussed and approved.
Transfer Funds
There are times when I want to give my son money to go buy shoes or get a haircut. There are also times when I buy something for him with the understanding that he will reimburse me. Having the ability to transfer money between our accounts saves us a trip to the ATM.
I added myself as a secondary signer on my son’s accounts only because the bank required it. However, doing so has provided me with the ability to ensure my son is managing his money wisely with the touch of a few buttons.
Does your teenager have a checking and/or savings account? Are you a secondary signer on the account providing you with the ability to easily monitor their finances?
Brought to you courtesy of Brock
Brock is a software engineer by day and personal finance blogger at night. He is a fitness junkie and enjoys grilling and smoking meat. Married with two children, Brock strives to improve his skills as a husband and father, and is always on the lookout to stretch his family’s budget as far as he can.
My parents accidentally set up my account so that I couldn’t access the funds without one of them. It worked out well. I couldn’t spend my paychecks. I had to stick to the money they gave me once a week. To be fair, they covered most of my expenses. I used their cars, never paid for gas, etc. But it taught me that money goes first and foremost in the bank. It’s a valuable lesson.
A good compromise for parents who think their kids aren’t ready for this step is the FamZoo card. We’ve used it for our kids for a few years. It is a prepaid debit card that allows kids to budget out their money each month. We can transfer money very quickly (like while they’re waiting in line at the gas station) if we need to and if they lose the card, their liability is limited.
@Abigail – That sounds like a great idea at least in the beginning…but over time I’d want to be able to give my son a bit more freedom. But, it does sound like it worked out well for you!
@Tracie – Freedom with limits….sounds great! thanks for sharing!