Landing his first job is the perfect time for a teenager to also land his first bank account. While visiting a bank for the first time as a customer may seem intimidating for a teen, knowing the requirements and process will give them a boost of confidence and perhaps their first glimpse into the responsibilities of adulthood. Learning to manage money as a teenager will give your child a head start in building life skills.
Step 1 – Explain How Bank Accounts Work
Consult with your teenager and explain how savings and checking accounts work. Determine whether he would prefer one or the other or both, and the pros and cons of debit cards (convenience vs. tracking expenditures). Help him make a list of things to do, ask when opening his account, and discuss how much he is willing to deposit each week.
Step 2 – Call the Bank
Call your bank and ask whether there are special accounts for minors, specifically for teenagers. Often, banks offer special deals, as they view teens as their next generation of investors. Make sure the recommended account has no minimum balance requirement and no monthly fees, and check whether there are minimum or maximum limits on deposits and withdrawals per month.
Step 3 – Figure out the Paperwork
Advise your teen as to the paperwork needed to open a bank account. While this may vary by state, he will typically need his Social Security number and photo identification or a birth certificate. The idea is to make it his responsibility to gather the necessities; although you’ll probably have to be on the account also (depending on the state you live in), you’re only going along for backup.
Step 4 – Go to the Bank
Visit the bank with your teen, but let him do the talking. Point out the bank official he needs to deal with, and have him fill out the forms and deposit slip. When the account has been opened, have him stand in line and make the transaction with the teller. When it is complete, shake his hand and congratulate him.
