Does Your Teen Need a Debit Card?

It’s a rite of passage for any teen to start managing their own money.

Today’s online banking and mobile wallet features give teens freedom to learn without losing parental or guardian oversight with a checking account and debit card.

What is a Student Checking Account?

A teen checking account is like any other account but is created jointly with a parent or guardian.

Both parent/guardian and teen can see account information, transfer funds and use online and mobile banking features.
A checking account often comes with a debit card for spending and can be linked to a mobile wallet if the parent is OK with this.

4 Signs Your Teen Should Get an Account

Age

Most banks have an age minimum when a person can open an account, even when a parent or guardian co-signs. At First PREMIER the minimum age is 12. Check with your bank to see when your child is eligible.

Income

Earnings can come from an allowance or a part-time job. With linked accounts, you can easily set an allowance to automatically transfer to your child's account.

Frequently Asking for Money

As your teen gets older, a debit card or mobile wallet can offer a more secure form of payment than cash.

Financial Literacy

A checking account is a great step to introduce skills needed later in life. But your teen should know some of the basics and understand the importance of tracking spending to avoid overdrafts.

What to Look for In a Teen Checking Account

Are there any maintenance fees or minimum balances associated with the account?

Limited income likely means the minimum balance will stay low and fluctuate.

What is the policy for insufficient funds?

Some banks will deny a charge while others have overdraft protection or allow you to link an account to transfer from a savings account. These programs can also come with fees when used.

Is there an App?

Mobile banking means your teen can see real-time account balances and keep better track of spending and saving.

Is it Secure?

Free fraud protection will alert you when your card is at risk. See if you can also lock the card if it’s lost.

What oversight can a parent/guardian have?

Card controls can allow you to set alerts and spending limits. You’ll also likely want the ability to transfer funds as needed without a fee.

Mobile Wallet is a Gamechanger for Teen Banking

Checking may seem unnecessary for a teen, but the debit card can make shopping easy without carrying a cash or card. See if your bank allows you to set up an online account and make sure your bank has an app.

Benefits of Teen Bank Accounts

You can help your teen learn lessons in personal finance and money management with a bit of parental oversight to provide guidance. Your teen can learn to:

Track spending, account balancing and other money management skills
Budget for expenses and put money aside for savings
Use a mobile wallet and online banking features
Balance needs vs. wants when your balance is low

Get Started

Most banks have an option to create an account online, but you can also call or visit a branch in person.
Create a savings account as well if your teen doesn’t already have one. That way, you can set up guidelines on how much of an allowance or income should be saved vs. available to spend.
Sign your teen up for online banking and download the app on your teen’s mobile phone. Your teen can more easily track spending and set up mobile wallet.
Set up Card Controls in your mobile app and make sure your teen knows any limitations on spending.
Consider setting up the money management tool so you and your teen can track spending, saving and create goals.

Still have questions? Talk to a personal banker at First PREMIER Bank. You can also chat with a digital banker through your online account.

Disclosure:

The information provided is for educational purposes only and is not intended to provide specific financial advice or recommendations.