Parents need to help teenagers learn how to manage money, and one aspect of that process means a trip to the bank to open a checking account.
Bank of America provides free checking accounts for students, and offers other amenities to help students and parents work together to manage the accounts.
Eileen Gallo, Ph.D. and Susan Beachan, J.D. report in their article, “Tweens, Teens, and Money Dreams,” (Journal of Financial Planning, August 2004) that most parents do not talk with their children about money, yet talking about money with children and teens serves as the best way to help them learn to manage their money.
At Bank of America, they realize how important parental involvement is for students, and encourage teens to open the account once they reach age 16.
“Being 16, you are still under the guidance of parents and they can help keep the child successful in the management of his or her account,” said Friendly Center Bank of America Customer Service Representative Justin Taro.
“I see that 18 to 20 year olds are more likely to have money problems when they are on their own for the first time with checking accounts. They are normally out of their parents’ homes, and trying to figure out how to manage their account.”
Taro said that when teens open their accounts when they are still at home, their success rate as young adults is much higher.
Parents can help guide the teens, remind them to save, and if the parents choose, can also have access to their child’s account through online banking and statements.
Even if the parent chooses to allow the teen full privacy with the account, the success rates are still high.
A convenience that Bank of America offers if the parent also has an account with Bank of America, is the ability to transfer money directly into the student’s account through online banking. The parent doesn’t have to have access to the account, but only needs to have the account number.
The most important aspect of the student account rests with parental involvement and interest in helping the teen learn how to manage his or her money.
According to Gallo and Beachan, children want to learn how to manage money, and the best place to learn is in the home.
Needed information and documentation to open the account
- Driver’s License, Learning Permit, or Picture I.D.
- Social Security Number
- Cash or Check to deposit (no minimum deposit or balance necessary)
Other banks in the Greensboro area offering free student checking