Raising a Financially Literate Teen in the Digital Age
A kid’s thirteenth birthday is a big milestone. By age 13, children can reason, think abstractly, and mentally manipulate information. And today, they are all about the latest technology. While we are often trying to convince them to decrease screen time, technology can open the doors towards becoming financially literate. It’s 2018 and most banking is taking place in the digital world. How can we, as parents, use this to our advantage?
The first step should be opening a checking and savings account. Here at ACU, we offer the perfect Teen Checking Account – all the perks and responsibility of a real checking account, but with parental supervision. Teens under the age of 18 will have access to a variety of free services like mobile banking, text message banking, online banking, eStatements, eAlerts, and eNotices. They can use these services to control their banking and learn critical money management skills. The Teen Savings Account, which is required to open a teen checking account, offers the perfect way to save, with competitive rates to make your money work for you.
The next step is learning to utilize all those tools responsibly. Many of the mobile banking features that make it convenient for adults, are also great tools to educate and encourage young savers. With the ACU Mobile Banking App, members can conveniently access their accounts, monitor balances, view transaction history, transfer money between accounts, and so much more. When kids can see how much money they’re saving month to month and how it’s adding up, they’re much more motivated to continue saving. If they’re old enough for a job, mobile banking allows them to see, in real time, when they receive their paychecks and how they’re spending it. Building responsibility step-by-step will help them grow into financially literate adults!
Once they’ve got the hang of it, have them analyze their spending habits. Did they save for months just to buy the latest toy? Was it worth it? Did they spend their entire paycheck on fast food and video games? These questions can spark the creation of a budget and help them become conscious spenders, which can later save them from landing in debt.
We are making technology work to our advantage to teach Generation Z financial independence! Ready to start teaching financial literacy? Come in to one of our branches to get started!