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5 Benefits of Teen Savings and Checking Accounts

Kids holding savings jars.

Learning about finances and getting a grasp on one’s own personal finances from an early age can make all the difference for an individual in the long run. When teens have the opportunity to take their finances into their own hands, they gain a deeper appreciation of their capacity as young adults. They’re empowered to make the (sometimes) harder choices that support their long-term goals, particularly when it comes to financial well-being. Experiential learning in this capacity can create an active, financially aware individual. A teen savings account can be one of the first steps to securing a strong financial future, and the benefits can last even longer. Below are five benefits of teen savings and checking accounts. Rivermark Community Credit Union is here to answer any questions you (or your teen) may have along the way.


Number one on the list of benefits has to be independence. Teens often express their desire to “grow up” quicker, and in opening a personal checking or savings account, they’re entrusted to keep tabs on their own funds. There’s no more begging or pleading for money. This is particularly true for individuals who hold a part-time job. The money that’s earned through old-fashioned hard work somehow equates to more in a teen’s mind. It’s money they earned, and therefore, a bit more thought on how it’s spent seems to happen.

When someone earns their own money, they tend to be more attuned to how it leaves their account too. Having the ability to budget, reference previous spending, and gain insights into where they can curb their spending has the potential to equate to a solid understanding that their financial future lies directly with the choices they’re making now.

The Can-Dos with a Checking Account

Let’s be honest: life without a checking account can be, at best, a bother. Having access to accounts both online or through mobile banking opens up a new world of ease. Teens, particularly those with jobs and a record of making good choices, can benefit from all the perks of having a checking account, including online shopping, paying bills online (cell phone bills, anyone?), and having the capacity to make choices about their individual spending habits. On that same note, enter a conversation about a savings account. While the ease of having a deposit account is wonderful, there’s no point in working for years in order just to spend, spend, spend. With both a savings and a checking account, teens have the chance to learn how to balance their saving and spending.

Saving for a Not-so-Rainy Day

Willpower isn’t necessarily a bright-and-shining word of praise, but it can offer an individual something particularly nice in the long-run. We all wish we had more in our savings accounts—and we can too, through a dedicated and intentional savings allocation. Saving an established portion or percentage of the money earned over time (or per paycheck) can lead to massive rewards in both the short- and long-term.

Teens who are able to earn self-incentives, such as understanding that 15 percent into savings leads to 15 percent for pleasure spending later, will learn valuable habits of both consistent savings and moderate spending, in conjunction with financial responsibility. Instilling good savings habits early on will allow teens to learn to save, research investments, and think about retirement.

Learning Financial Literacy

Not everyone grows up in a family where money is openly talked (or taught) about, so when teens have their own money in their own accounts, things seem to be taken more seriously. Beyond the ease of automatic payments for bills like cell phones or memberships, teens can learn how to make their money work for them. Whether it’s a certificate of deposit (CD) or another account, such as a money market deposit account, your teen will deepen their banking relationship with the institute that walks with them to financial literacy.

Building a strong financial base and the financial literacy to go along with it can, in time, have an astounding return on investment, one that even goes beyond the monetary figures. In having a solid grasp of the banking and financial sectors, your teen will be enabled to take full control of their financial future and even pass on some of the acquired learning to friends or family down the line.

Developing a Personal Banking Relationship

There are other benefits to holding accounts at a credit union where you develop a relationship with financial professionals. To start, you can better utilize some of the services they offer. Credit unions offer much more than just a place to keep your savings and checking accounts. They offer services like auto and home loans, budgeting basics, debt consolidation services, and as we mentioned, a financial education, among other things.

Knowing your financial specialists is like having your own financial cheerleaders. They cheer you on while the going is good and help lift your spirits should you slip up. They get to know you and your spending habits and are able to develop ways to assist you beyond just verifying a deposit. You become more than just an account number, and they become more than just a dressed-up individual whose name tag you glance at to recall their name. They’ll have your best interests at heart and be able to communicate clearly and honestly about services that may pertain to you.

There are benefits that extend well beyond the few mentioned here, and your local representatives at Rivermark Community Credit Union are there to answer any questions about the services we offer. We can also help your teen set up a new checking or savings account. Let your money work for you and your family in the best ways it can, and let us help you navigate your path to personal financial security.