Young people reaching the age of 18 may want to establish some independence. When it comes to money, though, parents may still have to be involved.
Heading off to college may present some challenges – including money. Parents can help, but financial institutions have certain requirements when it comes to a bank account. First off, there is the age requirement.
"Typically, it’s 18 years of age – however there are exceptions to the rule and many financial institutions have their own requirements, so before a parent decides to do that, they might want to inquire with their institution to find out what special requirements they may have," said Garett Cosner with Central Pacific Bank.
The age requirement is fairly strict for checking accounts. Savings accounts, on the other hand, are a different matter.
"Savings accounts typically are those with less risk and at the same time, easier to maintain," said Cosner.
"Age?"
"Age requirements are much younger. They could start maybe as young as seven," Cosner said.
Cosner says the most important thing is that the parent or guardian, the young person and the bank have a full discussion about what is expected to happen with the account.
"Once you establish the relationship with the banks, typically they have full reign, full responsibility of managing that account, so along with that, they’re allowed to make deposits, write checks, possibly get a debit card," said Cosner.
Debit cards are the trend when it comes to giving young people financial freedom and responsibility.
"It really cuts down time, not only for the person behind the cash register but for the people that are waiting in line to be able to just swipe your card and go straight through the line and that tends to be how people love to bank," Cosner said.
Parents may also want to check on the availability of pre-paid credit cards.
See the original article at: KHON2 Local News
