As teenagers embark on their journey toward adulthood, it's crucial to equip them with essential life skills, and one of the most important skills is managing their finances responsibly. Perhaps they are about to start their first job or are looking to save up for something special. Opening a bank account for teenagers can be an excellent way to introduce them to the world of personal finance, teaching them valuable lessons about money management, budgeting, and saving. In this blog post, we'll provide you with a step-by-step guide on setting up a bank account for your teenager, empowering them with financial independence.
Step 1: Research and Choose the Right Bank
We suggest looking for accounts that offer zero transaction or setup fees, attractive interest rates, online banking options and branch support for when you want to have a chat to a real person! Here at Horizon, we offer an account that is specifically for teenagers, the Teen Saver account. For kids wanting to focus on savings, take a look at our Youth Reward Saver account.
Step 2: Gather Required Documentation
Before contacting the bank, it’s important to ensure you have all the necessary documents. This typically includes identification documents that verifies your full name, date of birth and home address. For example, this could include a passport/birth certificate, Medicare card and a letter addressed to the teenager at their home address from school etc. For more information on identification documents required, reach out to us for clarification.
Step 3: Visit or contact the Bank
If you can, pop into the branch with your teenager or, if they’re comfortable, send them in independently. They will need to be there! Encourage them to take an active role in the process by asking questions and engaging in the conversation. This will help them develop a sense of ownership and responsibility towards their finances. The Horizon Bank team can help set up online banking, a debit card and answer any questions you might have. We have branches in Wollongong, Ulladulla, Albion Park, Thirroul, Bega, Merimbula, Moruya, Bermagui, Nowra and shortly, Berry.
Step 4: Educate them on Financial Literacy
Make sure your teenager understands the basics of money management. Teach them about budgeting, saving, and the importance of responsible spending. Encourage discussions around long-term goals, such as saving for a car or something they have their eye on, to provide a sense of purpose and discipline.
Setting up a bank account for teenagers is an invaluable step towards fostering financial independence and responsible money management. By empowering our teenagers with their own accounts, we equip them with the necessary tools to make informed financial decisions and set them on a path towards a secure future. If you have any questions or want to learn more, reach out to Horizon Bank’s friendly local team.