Habits formed during adolescence often carry over into adulthood and positive money management skills should be no different. Suffolk Federal is sharing ways parents can lead teens on the right path to personal financial responsibility.
- Save: Once children start receiving a steady allowance or cash from birthdays or other special occasions, they should be encouraged save that money by putting it into a bank. Eventually, these same principles should also apply to money earned through part-time jobs. Suffolk Federal offers a Youth Savings Account to help them get started!
- Banking: Teenagers might not understand the difference between their piggy bank and a real bank. Educate them that a bank or credit union will help them save up for those items that are more expensive as well as provide back-up in case of any money emergencies. Parents should also select a credit union to help avoid monthly service fees or minimum balance requirements for checking accounts as well as one with a large network of surcharge-free ATMS.
- Budget: Creating a basic budget will help teens see exactly how much money they have and how much they can spend on items they want – within reason. Suffolk Federal’s Personal Financial Management tool through Online Banking makes viewing bank balances and creating savings goals easy and available right at your teen’s fingertips.
- Credit and Debit Cards: Even if they aren’t using them yet, parents should aid teens in having a basic understanding of credit cards – the good and the bad – including interest and revolving balances. When the time comes, assist your teen in selecting a card that rewards them for their purchases such as Suffolk Federal’s Mastercard Debit Card with uChoose Rewards which accrues one point for every $4 spent.
- Online Banking: Teens seem to be using their phones nonstop so make this a benefit by encouraging them to learn about and understand mobile banking – and of course, providing access to Mom and Dad as well. With electronic statements and real-time notifications for account withdraws and more, teens can work with the tools they need to effectively manage their money.
“Teenagers are often eager to learn, and as they grow up, parents can help them to foster positive money skills and teach them the basics which can help set them up for financial success for life,” explained Ralph D. Spencer, Jr., President & CEO of Suffolk Federal.