There are so many financial management tools out there – online banking, apps to check your balance, texts from financial institutions that tell you your balance and going to the ATM. As young adults have grown up with these automated applications, they never had to learn the traditional methods of balancing a checkbook or manually write out a check. While convenient, young people have become reliant on these services. As Superstorm Sandy demonstrated, complete dependence on technology can render many helpless while waiting for restoration of power. Learning the old school methods of writing down all transactions (debits, credits, fees, etc.), will empower young adults to take charge of their finances and decrease dependence on automated amenities.
In the era of plastic being the same as money to many young adults, many financial institutions offer debit cards to young people, with or without a parent on the account. Many young adults who are new to banking don’t realize the fees incurred at an ATM machine and how both machines may charge a fee.
When your child is ready for their first debit card, sit down with them and explain to them the importance of keeping track of their spending. Explain to them that they should compare their transactions to the bank statement that they will receive. Explain that mistakes can be made -- mistakes made by them (the account holder), the financial institution or the merchant that they purchases something from. More importantly, this is a good way to make sure that they were not a victim of identity theft.
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Teachers Federal Credit Union (TFCU) offers young adults who are as young as 15 years old the opportunity to open up a checking account and have their own debit card. This is a great way to teach your child how to manage their account and to help them realize where their money is being spent.
For more information, please contact Jennifer Gunn at jenniferg@teachersfcu.org.
