Which is the best way to handle my teenagers financial irresponsibility?

Question

My 17 year old has overdrawn her checking account. She basically "nickled and dimed herself" as my father would say. She didn't balance her check book properly, thought she had more money. She uses her debit card for everything. $1.29 for a soda, no money in the bank equals a $22.00 service fee. All told she's overdrawn by only about $40.00 but the service fees for each transaction has brought the total to $357.00. I'm not rescuing her from this. She has to pay back every dime herself. I made her cancel her spring break trip and she asked her boss for extra hours to pay this off. Here's my question. Should I make her cancel her checking account? My idea is to have only a savings account and take out spending money every week. I think that she may not be mature enough to handle a checking account. Or should I allow her to continue having a checking account and just monitor it more closely?

Answer 1

Well im on the other side of the fence about this, Because my mother is constantly telling me to be careful with my money. Even tho im 20 and im starting school in september. I still have to pay everything myself. I pay rent ( 100 dollars for my bedroom) own a car, pay for internet and phone bills( my cellphone) and when it start school i have to work pier-dem or part time ( ima nurse tech) because im going full time for school. I understand its really hard getting a debit card and trying ot keep track of your money, because the little things like food and gas can mess it up...thats why i have a savings account as a backup. Incase of emergancy and such. Since this , i wasnt able to buy clothes and shoes or things that i want or even go on vacation on my own because its hard living by a min. Wage and no one cant help you unless you really need it because you gotta learn responsibility. So i would jus let you daughter go and let her learn from her mistakes . The spring break is a good way of telling her thats you need to start being more careful with your money because i was at that point, buying everything i saw and worrying about bills last...luckily, i stopped because it couldve gotten worse...wel i wish you both luck....
hope everything gets better...

Answer 2

I did the same thing when I was 16 except, back then they didn't have debit cards like they do now. I had to write checks for cash and what not. Ended up, 15 years later I was arrested for several bogus checks that I had written at 16 (and didn't keep track of), spent 12 hours in the county jail and had to do 40 hours of community service and probation for 2 years. IT SUCKED but it was my fault. If she continues to stay overdrawn the bank will close her account for her, report her to chexsystems, ruin her credit with banks and she won't be able to open another checking or savings account until it is all paid up. Even then it is very difficult. She needs to learn from her mistakes and she is close enough to being an adult that if she doesn't learn now it's really going to bite her in the a$$ when she is on her own.

You are doing the right thing by making her pay it all back but I would let her keep the checking account and let her learn on her own. Make her aware of the consequences of writing bogus checks if she does, of what the bank will do if it continues and how difficult it is to get it all straightened out and get another checking account. Guide her but don't step in, she needs to learn financial responsibility.

Answer 3

rescuing people from their financial woes only encourages waste because they will harbor the hope that you will do it time and again.

suggest she keep a small amount of change in her purse for sodas & snacks and when that is gone, there are no more treats. PERIOD!

remove the debit card and checkbook from her wallet until you get the counseling help she needs to become self sufficient.

Get an appointment with a financial counselor where you and she can sit down together to go over her spending habits.
otherwise, she will just keep spending until she has put herself into a hole that will never end.

you did the right thing by having her cancel her trip and by having her ask the boss for more hours to pay off her mess.

tell her that you are putting her on a weekly allowance with the remainder her checks being directly deposited into her account to pay off her bills.

arrange with her boss to pick up her checks before she does so that she won't go on a spree and further hurt her future financial opportunities.

Answer 4

Its very obvious she is irresponsible towards money or keeping a checking account. Go back to the old fashion routine. Allowance for what she deserves and when its gone its gone. Then she will see how fast money comes and goes.

Answer 5

Well I think that you should just stick to what you said No spring break unless she pays back every dime.I think she is headed in the right direction asking for extra hrs.She does not sound like a bad kid.Just stick to what you said and maybe this will teach her>Good luck!

Answer 6

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Answer 7

sounds like you have a handle on it but ya make it just a saving account she cant handle the debit card

Answer 8

She should keep the account and learn to monitor it more closley herself!