Just Starting Out? Let’s Talk Finances
Tuesday, Sep 3 2019
Talking about finances with your children can seem daunting. However, if you have a teen or young adult, it’s time to talk money. Keep it simple and keep these tips in mind.
Open an account
If you haven’t already, help them open an account. It’s easy to open an account where you currently bank, and it will help you keep an eye on spending. We recommend opening a savings and checking account, and ordering checks as well. You usually won’t use checks in the average day-to-day, but they always come in handy.
We also recommend that they keep a check book register; either a physical register or on an app. This teaches them to track their spending so that they don’t incur overage fees. Most teens and young adults are already more tech savvy than adults! Apps are an easy way for them to keep track of their spending. Here are some of the apps we find helpful: Wally, Toshl Finance, Pocket Guard, Albert and Mint. These apps will help your teen see a snapshot of their expenses and even set spending limits.
Credit Cards and Loans
The truth is, teens will start getting credit card offers at 18 and they will keep coming. So, when is a good time to apply for a credit card? It’s important to caution your young adult on the potential risks that come with credit cards. Using a credit card to pay for gas or small items and paying it off at the end of each month is a simple way to establish credit.
Most financial institutions offer secured credit cards or share secured loans. This type of loan allows you to put up your own money as collateral so they can begin to build their credit in their own name. This option will offer a lower interest rate and
the opportunity for your student to get a loan in their name.
Wherever their journey takes them, money management will always be a big part of their lives. Give them the tools that they need to be successful!