Teaching Teens About Checking in Today’s Tech-Driven World
As seen on The Rhode Show
In today’s technology driven world, online and mobile banking tools have shifted the ways that we teach our teens about money management and banking in general. When it comes to preparing your teens to open their first checking account, here are a few tips to help them manage and keep them engaged:
Mobile and Online Banking
Today’s teens are more likely to adopt their own combination of mobile and online banking for managing their checking accounts. In fact, Millennials are three time more likely than other generations to open a new account using a mobile phone.1 Fortunately, mobile and online banking tools make it easier than ever to teach teens how to responsibly monitor their accounts.
- Real Time Awareness: The days of waiting for a monthly statement to arrive in the mail in order to balance the checkbooks are over. Today, thanks to mobile and online banking, we can track every deposit and payment in real-time and balance our checkbooks on the go. Teach your teen to keep close track of their spending and always be aware of their balance and the outstanding payments that haven’t yet been processed through their account. Because teens tend to be tech-savvy and familiar with app-based applications, this is something most of them will find natural.
- Text Alerts: Most mobile banking apps, including Washington Trust’s, include the option to set text alerts and push notifications to alert you of a low balance or large withdrawal to your account. This is a great way for teens to stay on top of their accounts, even when it may not be on top of their minds.
- Use Online Services to Teach Saving and Money Management: There are lots of great apps out there to help manage money and set savings goals. These services are great for getting teens organized and used to a routine when it comes to planning and tracking their spending. At Washington Trust we offer Money Management, a free online service that links with online banking to help track where you are spending your money, identify ways to save and set savings goals.
Debit cards offer convenience without the hassle of cash or checks, but it’s important that your teens understand how they work.
- Transaction Times: Teach your teens that debit card payments come out of their checking account balance, and sometimes those transactions can take a few days to clear their account.
- Security: It is critical to make your teens aware of the risks, and teach them to keep their PIN and card number private, and as secure as possible.
- Mobi Money: At Washington Trust we offer the Mobi Money mobile app to manage your debit card, allowing you to set spending limits on debit card transactions and receive instant purchase and transaction alerts on your mobile device.