5 Benefits of a Teenager Bank Account with Debit Card


Financial preparedness and fiscal fitness is not something that’s evenly distributed throughout society. Some people have a deeper understanding of the ins and outs of the financial world. But when individuals grow up learning about a healthy and wellness-focused financial future, they feel empowered to be in charge of their financial futures. This is where earlier education about managing finances and the financial world come into play.

Some people opt to open savings accounts for their children when they’re little in the attempt to encourage savings, and for many, this can be a good way to start education about savings and what it means over the course of time. That being said, when toddlers grow into children and then grow into young adults, the dynamic surrounding finances can begin to shift. Teens have to go beyond learning how to save money; they’ll need to learn how to earn and spend money responsibly. Below are five benefits of a teenager bank account with a debit card.

Teens Have Different Banking Needs

Many young adults opt to get part-time jobs during high school and, in doing so, start operating their financial futures. As such, employers will issue paychecks that will either get cashed or deposited via direct deposit into a teenager’s account. Payday can be an exciting time for young adults, especially as it represents their hard work and dedication over the course of the previous two weeks.

That said, cashing a paycheck doesn’t lend itself to much in the way of financial smarts if an individual simply cashes their paycheck and proceeds to pocket it. Setting up a direct deposit can be a great way to “preview” the norms of having a bank account, but if a young adult doesn’t see the money as accessible, there can be a disconnect between the established responsibility and reward.

As such, there are numerous benefits to instilling not only good work ethic and responsibility in a teenager’s life, but also enabling them to use their hard-earned funds as they wish—within reason, of course.

5 Benefits of a Teenager Bank Account with Debit Card

1. It teaches about working, saving, and growing one’s money.

For the sake of how important a strong work ethic is, it’s worth repeating: young adults who choose to take on the responsibilities of having a job should be able to manage the money that comes from their efforts. If your teenager is a hard worker who can stay organized, be on time, and perform well, most employers won’t hesitate to continue employing them and may even promote them down the road.

If a teenager sees that their money is building up and their savings increasing, they’re going to be more likely to really contemplate whether spending that extra $50 on a new game or new jacket is worth it. So this is the right time to expand their education about investing and growing their income. For example, if they’ve saved $3,000 over the course of their summer job, it might make sense to keep some of it for “play” money and expenses, and stick $1,000 or $2,000 away in a certificate of deposit so it can grow over the course of the school year.

2. It promotes a strong sense of self-accountability.

Many youths are accustomed to their parents funding their needs and wants. Instead, a teenager bank account with debit card allows them to manage their money, and as a by-product, they’ll need to account for their purchases in order to keep their account “in the black.” This idea of accountability works both in terms of responsibility and accounting.

Even initially, obtaining a register for the teen’s checking account can be a strong visual aid to the fact that there are deposits and withdrawals made with the account. It can be their duty to keep track of their purchases and also the money that gets deposited into their account, be it from a job, birthday money, or an allowance.

3. Additionally, it can function as a simple transition into online banking and transactions.

Through having a physical register, young adults can both keep track of their income and spending and also learn to cross-reference with some of the financial institution’s online banking tools. For teens under 18, this can be a time where parents or guardians demonstrate how to go back through the record-keeping and make sure that all purchases were entered correctly. It may seem a bit redundant to go through it again, but it really encourages the account holder to be on top of their finances and teaches the capacity to check one’s math.

4. It’s good practice for adulthood.

Let’s be honest: if we could, many of us would enjoy going back to being younger, when we had fewer responsibilities and fewer bills. As that’s not the way time works, being a teenager with a bank account and debit card can be a nice preview of how things work in the world of finances. They will learn to really question the necessity of purchases and will also learn that growing one’s wealth isn’t just about putting money in a savings account. There are other ways to benefit from having a debit card and using it wisely, including utilizing certificates of deposit or higher-yield accounts, or even putting funds aside toward a bigger purchase, like a down payment on a car or house.

5. Some debit cards have perks.

With the support of a parent or guardian, some debit cards enable the cardholder to earn rewards or cash back on purchases. There are debit cards that allow teenagers to do a little good for their schools. Central Willamette Credit Union will donate a percentage of a student’s debit card purchases back to their school, and this can certainly be a win-win situation.

If you’re wanting to help your teenager get their own bank account with a debit card, then look no further. Get in touch with us at Central Willamette Credit Union to see how we can get your young adult on their feet and taking steps to establish a strong and sensible financial future.