>> Narrator: Does the idea
of your teenager having
a checking account or debit card
make you nervous?
>> See, if I had a card
like that, I wouldn't have to
bug you for cash all the time,
or get it out of my savings
account.
>> Know what?
You're right.
You're not a kid anymore.
>> Narrator: When kids are
young, using cash is the most
direct way to understand money.
If they receive a dollar,
it's right there,
ready to save or spend.
And if they spend that dollar,
they immediately know it's gone.
But as kids get older, and need
to manage larger sums of money,
using cash all the time
isn't so practical.
>> So if you had one of these,
how would it take the place
of your cash?
Does money just magically
get loaded into it?
>> I do have a job, remember?
And I do get paychecks!
>> Paychecks?!
Hmm, now you're talking
my language!
Hey, Mr. Moneybags,
why don't you carry that bag
for your mother?
>> Maybe we should see
if the bank will let you
open your own checking account,
you know, in addition
to your savings account.
But first, I think you should
help us out with ours.
>> Narrator: Even though most
people are writing fewer
paper checks these days,
a checking account
is still the foundation
of nearly everyone's finances.
Whether they end up using checks
or debit cards,
teens need to learn how
to manage these accounts.
>> Here's where dad and I
write the check number,
the date we wrote it,
and who we wrote it to.
And what goes over there?
>> The amount you paid, right?
>> Right, and when
should you do all of that?
>> Right away?
>> You got it.
>> Narrator: By carefully
explaining the basic mechanics
of a checking account, parents
can help prepare their kids
to be successful money managers,
and avoid getting caught
with insufficient funds
or costly fees.
>> And here's something else
to do right away.
At the store,
mom didn't pay with a check.
She used a debit card, and
then they gave her a receipt.
What do you think is the first
rule of debit card receipts?
>> I don't know.
>> Rule number one:
Save the receipt.
And what might be
the second rule?
>> Uh, write it down?
>> Bingo!
The only difference
between this and a check
is that there's no check number.
All the other entries
are the same.
And the money still comes right
out of the checking account,
even faster.
>> Narrator: Today, many banks
will open checking accounts
for teens ages 13 to 17
with a parent's signature.
They often accept direct deposit
of the teen's paychecks,
instantly providing
a secure place for their funds,
and a safe way for them
to pay for some things
with their own checks.
Plus, these special accounts
offer parental controls
and will alert you
if there's ever a problem.
>> This is your US Bank
ATM check card.
You can use it to make purchases
anywhere Visa's accepted,
and also make withdrawals
at an ATM.
Well congratulations,
and thanks for coming in.
>> Narrator: When teens
get their own checking accounts,
the object is not
to make spending easier.
It's to help them learn
the important skills
of money management,
while still living at home, and
while you can still guide them
and help them avoid problems.
>> So what just happened?
>> I got $20.
>> Yeah, that's what happened
here.
But what just happened
over at the bank?
>> Twenty dollars got taken
out of my checking account.
>> And now what are you
going to do?
>> Save the receipt
and write it down.
>> Bingo!
I think we've got a winner!
Hey, how about buying us
a cup of coffee
with some of that?
>> It's for my bus fare,
remember?
>> Only kidding.
Hey, let's go shoot some hoops.