Banking For Teens

By: Ella Cutrona

A Budget

  • Builds savings
  • Help's prevent overspending
  • The better you can identify your goals, the better you can incorporate them into your spending plan.

What Does a Budget Consist of?

  • Income

  • Fixed expenses (Ex: rent, car, cable bill, etc… considered standstill payments)

  • Variable expenses (Ex: electric bill, phone bill, gas, & is based on usage/the amount of times spent on that specific variable)

  • Discretionary expenses (Ex: shopping, movies, out to eat, etc…)

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How Do I Get Started?

Choosing a Bank:
  • Convenience
  • Service
  • Cost

Checking Account:
  • Debit Cards - money taken out immediately
  • When you have more than one account, such as a checking and savings account, you are able to make transfers between these accounts and usually at no cost.
  • *Online banking allows you to securely access your account information through your bank’s website.

Why Should I Have a Checking Account?

  • Reduces the need to carry large amounts of cash

  • Convenience

-Useful when paying bills
  • Spending plan tool

-Keeps a record of where money is spent
  • Safety

-Safer than carrying cash around

Why Should I Have a Debit Card?

  • Electronically connected to your bank account

  • Money is automatically withdrawn from your account when you make a purchase

  • Requires a PIN (personal identification number)
-Confirms that you are authorized to use that account

Pros & Cons of a Debit Card:

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Terms That I Should Know:

Budget- An estimate of income and expenditure for a set period of time.

Finance- The management of large amounts of money, especially by governments or large companies

Checking- An account at a bank against which checks can be drawn by the account depositor.

Debit- An entry recording an amount owed, listed on the left-hand side or column of an account.

Credit- The ability of a customer to obtain goods or services before payment, based on the trust that payment will be made in the future.

Transaction- An instance of buying or selling something; a business deal.

Fraud- Wrongful or criminal deception intended to result in financial or personal gain.

Helping your teen manage a checking account