Growing Up

[ 0 ] August 11, 2011 |

Time for another phase in my teenager’s life…well there are a lot of those, but this one is finance related.

She has moved from being a Kirby Club Member to a Dollars & Sense Member here at our Credit Union.  When she received the letter addressed to her with information on her new membership type, she seemed to gravitate towards the debit card and checks becoming available for her.  Maybe some of you are parents of teenagers and the thought of them having a check book or debit card scares you!  It did me, so it was a great time to talk budget, cash, checks and plastics!

We have been talking about savings account for the past couple a years because when she earns her allowance or receives birthday money, she knows to put 10% in her savings.  Now it is time to explain using a debit card for a checking account and that it is quite a bit different.  She was under the impression that paying w/ a debit card means you ‘pay later’ so we talked about that quite a bit; I also talked about credit cards and how the interest and payments work and let her know that credit cards are for a bit later in life! 

We decided that she will continue to save her money earned into her savings account and next summer when she is employed she will begin to deposit money into her checking account which she will then be issued her debit card.  She seemed to understand what a checking account and debit card means and the responsibility of using it, so we will gradually work towards her freedom to spend, and budget properly!

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Category: Kids

About the Author ()

Hello! I have been with IAACU since August of 2011. I am a Member Development Rep. You might have talked to me a few times on the phone or through e-mail.

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