So now that it’s established that it’s a good idea to help the kids get their feet wet in terms of learning how to manage money, the next question for parents is how they should achieve this. And one of the best ways remains, as it always has been, a checking account. There doesn’t have to be a great deal of money on this account and, if you shop around, you should be able to find one that doesn’t have any hidden fees. Your kid will then be able to learn on the fly about how to receive, pay and save money, without some of the heavy consequences that will attach themselves to those actions later in their lives.
If you want to get the start, order them some cheques from a reputable online source so that they can get a feel for what they look like. For the following reasons, a checking account will have them feeling confident about managing their finances when they are one day out on their own.
One of the most important steps that everyone needs to take once they get to the point where they can manage their own money is mastering the little bits of mathematics that are involved with making monetary transactions. This will come easier for some than for others, so it’s important to get your kids started on this process. It’s an important to skill to learn due to the continued popularity of cheques.
Another important characteristic of keeping track of money is the act of recording just what goes in and also what comes out. The checking account is tailor-made for record-keeping, and it will get kids in the habit of writing down each payment they receive or send. This will ensure that they’re always on top of their monetary situation, which, if they grow up to run their own small business, will come in handy one day.
Kids often struggle with the concept of money in terms of how spending a lot of it has consequences. If they have a checking account and see just how this works in practice, it’s likely that they’ll become more conscientious about spending big amounts. In addition, they’ll also begin to learn the value of saving money for really important purchases.
For these and many other reasons, getting your kids, a checking account is crucial. It will start them on the proper path to financial responsibility.