How checking accounts work
Every graduate needs a checking account. If you haven’t set one up already, now’s the time to do so. This way, you can answer any questions your graduate may have and go through the terms, conditions, and fees on the account. Explain how to make a deposit and a withdrawal, and the importance of balancing their checkbook every month. And, tell them how to use a debit card properly and safeguard their information.
How to budget
A budget may not always be popular, but it’s necessary – especially for students with limited income. Explain the difference between income and expenses, and how expenses should never exceed income. You could create a budget together and compare how you both do at the end of a month. This way, you can show how to make necessary adjustments and why. With a little competition, it can be fun!
How to use credit cards and why
Teach your graduate everything you know about credit cards – the good, the bad, and the ugly. Use personal experiences to explain how they work, what an interest rate is and why they should avoid paying interest at all costs. Encourage them to use their card for emergency expenses only. Help them understand that too much debt can limit what they can do in the future.
How to create a savings plan and why
Teach teens how to set up a savings plan. They may tell you they can’t save in college or when starting a new job, but they can. Tell them it’s easy to save a little every paycheck – especially if it’s done automatically. Even if you’re planning to pay their bills through college, they still need to know what things cost and where that money is coming from. Maybe give examples of how saving has helped you get through emergencies.
Check out the savings accounts we offer here
As a parent, your most important priority is your children. Send them off into the world with as much information as you can about their finances. Answer any questions they may have and show patience when they mess up. The more they know, the better they’ll be in the long run.
Information is for informational purposes only and is not intended to provide legal or financial advice. The views expressed are those of the author.
Source: Southwest Strategic Marketing, LLC