For example, older children could pay for movies and CDs. When it's their own money at stake, kids learn that they have to limit their entertainment costs and sometimes do fun things that cost nothing. For teenagers who have a job, checking accounts can be worthwhile. With their own account, children learn how to balance a checkbook and how much a bounced check costs. These are important lessons to learn before teens hit 18 and are out on their own or in college.
Many banks require parents to be joint account holders with their children.
Once a teenager turns 18, they can have their own credit card without their parents' permission or knowledge. Parents can't assume that their children know about interest rates and the cost of credit. That's why it's important for parents to talk to their children about how credit is a convenience, not a license to spend money they don't have. Parents with teenagers approaching 18 years old may want to consider opening a joint credit card account to give their kids some experience with plastic. Set limits Parents often struggle with how much money to spend on brand-name items for their children.