Opening a checking or savings account is a rite of passage. Each one of us can probably remember the first time we walked into a bank with our parent, to unload our piggy bank at the teller’s window. Most banks have special types of accounts for minors, and many of those accounts change status as the account holder reaches the age of majority. In most instances, a youth savings account can transition into a checking account when the child reaches the age of 18. This new world of checks and debit cards may seem familiar; because let’s face it, children today see their parents pull out a debit card for nearly every purchase made. But, if there is not a clear understanding of how to use a check card and checking account, a young adult can quickly find themselves overdrawn and scrambling to cover insufficient funds charges.
Three things every young adult should know about their checking account, to avoid a negative or low balance, include:
- Whether there is a monthly maintenance fee for the account. If so, it is critical to deduct this amount each month in order to avoid a checking account balance going negative.
- Whether the bank charges for using a debit card at an ATM from another bank, and the amount of that charge. It is also important to know if the other bank will charge for using their ATM machine. If so, these charges must be calculated into any amount being withdrawn in order to keep an accurate track of the balance in the checking account.
- How to balance the account, which might be included on the back of a monthly paper statement. We understand the trend today is to go paperless, but until you have a good grasp on how to properly balance your checking account, opting for paper delivery of your statements is a good idea.
These tips work best for college kids, away from home for the first time, or young adults that are getting their first taste of freedom. Part of growing up and being an adult is managing your own money. And, part of managing money can be knowing when to seek help with your finances. If you are experiencing financial difficulty, call us to learn your options.
For help with financial issues, contact us at www.DsouzaLegalGroup.com. We can help you regardless of your age or financial position. Call today to schedule an appointment with one of our debt management legal professionals.