what are the advantages of having a bank account at age 16?

Answer 1

There's a number of advantages.

1. A checking account can be controlled jointly by a parent and a child. The parent can deposit money and the child can withdraw it to learn fiscal responsibility. The parent may also stock the account with additional funds for things like emergencies, trips, etc.

2. Debit cards are MUCH safer and easier to use in this day and age. Carrying cash on your person is now mostly restricted to purchases made at fast food places, or ma and pa stores with no credit card readers.

3. A CREDIT card is also important at your age. It is NEVER too early to start establishing good credit. Just make sure to pay your balance in FULL EACH AND EVERY MONTH. After several years of making purchases and making payments in full, your credit score will be higher than others your age. This means a car loan, student loan or an apartment lease or condo loan will be much easier to get without a co-signer.

The only real downside is that most teenagers are irresponsible with their money and will end up "blowing it all" a few times before they truly understand the concept of income versus expenditure. The other issue is account fees. Bank of America and such charge 5 dollars a month for an account. I believe Washington Mutual offers a free account.

Good Luck.

Answer 2

It once was a good way to accumulate savings for that proverbial rainy day. That was before banks became greedy money making machines and stipulated that savings accounts must have a minimum balance of hundreds of dollars or they would be charged a monthly fee to keep the account. It was also before they stopped paying decent interest rates on savings accounts. In today's environment if there is any advantage to a 16 year old having a savings account, it escapes me. If that 16 year old has at least $2000 it would be far better to open a money market account at one of the mutual fund companies. That way there would be a pitenance of interest paid on the account.

To be fair with the banks it was also before the government mandated all the paperwork associated with keeping a savings account such as providing 1099s etc. so I guess I really can not completely blame the banks for balking at providing low balance accounts.

Answer 3

You can learn at a young age on how to manage your money and how to put some back for a rainy day. I just opened one up for my 16 yr. old son this past week. He feels more responsible. And is already saving money. He only allows himself so much cash for the week and the rest goes into his accoount. I think he is going to do well. =) You also realize that money doesn't grow on trees. What you have in your account is ALL YOU"VE GOT so spen wisely !

Answer 4

Becoming familiar with the way banks operate, learning how to become financially responsible, and seeing how fast money gets spent if you aren't careful. I wish I would have done this at 16.

Answer 5

You can start saving. When you get a credit card you can do telephone banking to pay it off which will give you a credit rating. When you start a job they have some where to put your pay cheque.

Answer 6

Having ur own money available so that when ur parents say no you'll have ur own cash. Plus things like a car and college.

Answer 7

you can start saving now. will have more money later for a car or college.

Answer 8

People won't try to kill you for the cash you have lying around

Answer 9

you can put money aside for college, to travel etc.

Answer 10

responsibility