Money Tips for Teens in the Real World

Starting a small business in college introduced me to money making early on, but I couldn't have done that without first mastering money management in my teens. What seems basic to me now was all brand new then: How to navigate the grown up world of money, banks, lending, identity theft. Here are the money tips for teens that got me started as a financial success.

Checking Account

Getting a checking and bank account is easy, and it doesn't have to cost you money. Most banks offer a free student checking account from the age of 16, so long as a parent or guardian will co-sign on the account. Then once you turn 17, that person can be removed.

Savings Account

It's wise to open a savings account as well as a checking account and to link the savings to the checking account. Then if you ever try to withdraw more than you have in your checking account, your bank will automatically transfer the missing sum from your savings account into your checking. Keep in mind, however, that such transfers are limited to 6 per month by government regulation.

Debit Card

With your checking account you'll receive a free debit card. It looks like a credit card and to use it you must enter a 4 digit pin number when prompted. Your debit card will arrive in the mail between 7 to 10 business days after you open the account. The sticker on the card will tell you where to call to activate the card by choosing a 4 digit pin number that you can easily remember.

Check Book

You'll automatically receive a complimentary check book when you open your checking account. Use the beginning of the check book to keep track of the checks you wrote. Write down the check number, the exact name of the payee, the amount and the date. If the check is ever lost or stolen, you'll be able to cancel it using this information.

Online Banking

From the get-go, create a user id and password with your bank's online banking system and log into your account. Be sure to do so every week to monitor any expenses. This will allow you to keep an eye on your budget. It will also alert you early to any fraud on your account. If you ever see a charge you don't recognize, don't dispute it online. Instead call your bank and speak to a live person who will walk you through the dispute process and likely save you any automated fees.

Credit Cards

If your parent or guardian is willing to authorize a credit card application with your checking account application, you will be handed a plastic card that's worth $500 or more. That can make you feel powerful, and it should. Credit cards are a lot like drugs. They're very easy to use at first until you find yourself, very quickly, caught in a cycle of debt, and you have to keep using the card just to keep your financial life alive. If your parent gives you a credit card for emergencies, be sure to use it only when you're in danger and need help.

Identity Theft

You may feel too young to worry about your social security number and identity theft, but, sadly, you're wrong. In today's world the social security numbers of babies are used by identity thieves, because parents rarely monitor the credit reports of infants. To safeguard your credit score, which will affect your financial future, order your free credit report once a year through this government website only. Other .com websites (instead of .gov) will introduce hidden fees at the last minute or steal your personal information.

Find Your Passion

As a young adult the most important financial decision you will make involves your career path. This will affect your future earnings and happiness. Have fun with the process of self-discovery by taking these 5 reputable career aptitude tests. Start thinking about what sets you apart from other people, what you're better at. Even if this is something like playing guitar or writing, which may not seem like wise career paths, you'll always find ways of earning a living in your area of interest if you continue to learn more about it, become an expert and seek out like-minded people (like my amateur guitar playing friend who builds guitars for a living).

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