Why should kids have bank accounts?

Question

top reasons and benefits?

Answer 1

1. In the USA if they are under 18, they cannot enter into a legal contract. Opening a bank account would be a legal contract with a bank; writing a check would be a legal contract guaranteeing payment.

2. What you can do is an adult can open a UGMA & UTMA Custodial Accounts for Minors.

Answer 2

To learn how to manage money properly

To allow them to make mistakes with their money, and learn from them, before the numbers they're managing get very big

To learn the value of hard work, discipline and delayed gratification

To understand the concept that if you save your money and pay cash, you can often buy for less

To learn the lesson that if you buy with cash, you're not paying interest rates.

To know the joy of watching that bank balance grow

To understand the relationship between their actions (working, planning, saving) and their outcomes

To experience the satisfaction of buying something with THEIR OWN money.

Answer 3

minors can open checking accounts..it's caled high school checking (parent must be joint owner with them) generally 13-17 years old.

Top reasons (assuming you're a parent): know where your child is spending/how much

they don't teach finance in high school...the concept of what a checking/debit/credit/savings/payments ect are the whole concept has to be learned...wouldn't it be best to be able to have access to their acounts and be able to teach them the right techniques while they're still young.

there are so many individuals who ruined their credit when they were young due to credit card late fees or overspending and they have to carry that for the rest of their lives paying higher rates adding on more debt simply because no one was there to help educate them on financial importance and power in the early years.

educate them on spending habits/balancing a check book/how credit works and the importance of establishing it and building it higher...the importance of saving...and how to handle a problem at a bank when something comes up or how to look for those sometimes hidden fees or potential problems. I hope this helps...I wish the education system would take an hour or two at the least and teach finance and basic banking principals but they don't...if you are able and willing please be a helpful parent...