Teen Savings

KENNEWICK, Wash. - Graduation is right around the corner and many high school students may feel unprepared to take their next big steps into college.

Helping teens understand how finance works, will set them up for success in the future. Here are a few tips created by Numerica Credit Union on how parents can help their teens financially. 

1.  Set up a checking account: With a checking account and debit card, you’re able to track spending and see where paychecks or allowances are going.

You can ask your financial institution about an account specifically for teens and their parents. For example, Numerica offers teens checking accounts that allow parents to get low-balance alerts, set spending limits, and help their teen establish good money habits.

2. Reach savings goals: Creating a budget and planning of how much money to set aside every paycheck teaches smart money management into adulthood.

Saving for a $10,000 car can seem like a big goal. Help your teen break it down into monthly savings goals that are “SMART” financial goals. These are Specific, Measurable, Attainable, Relevant and Time-bound

3. Understand credit cards: When used responsibly, credit cards are a great way to build credit and earn rewards. Plus, they are convenient to use.

Take the time to educate your teen on what interest rates are and the importance of making payments on time. When first getting a credit card for your teen, monitor their account regularly, have them walk you through their payments and help them set a spending budget.

For additional information on teen spending, you can click here