You may not always require your student to balance a checkbook (if they have a mobile banking app), but this training will change how they think about spending and saving. When kids balance a checkbook, they are less likely to make impulse purchases and value their hard-earned money more. When they physically add and subtract their credits and debits, kids are more likely to “count the cost” before they spend. If your student has an online banking app, you may wonder why he or she needs to learn to balance a checkbook. When you know how much money you have and where it’s going, you will quickly spot any unusual charges. It also can prevent your kids from over-drafting their accounts (spending more money than they have).Ĭonsidering the standard overdraft fee is around $35 per incident, they should avoid it.īalancing a checkbook also is a step toward fraud prevention. It’s the first step to making a budget and keeping it. You keep track of the money flowing out and the money coming in. That’s where balancing a checkbook comes in. You want your kids to understand how to manage money, which starts with knowing how much money you have. In this age of swipe, swipe, swipe, is it essential that kids know how to balance a checkbook? Why Kids Should Learn to Balance a Checkbook In financial terms, it means adding your credits and debits. What Is Balancing a Checkbook?īalancing a checkbook–even if you don’t have a physical checkbook–means keeping track of the money going out and coming into your checking account. This article contains affiliate links to things that you might like. Here’s all you need to know to teach kids to balance a checkbook. Balancing a checkbook is a life skill, but how do you teach it?
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