Your teen just got a checking account. Which means, you just got a new checking account. While a youth checking account is a great way to teach smart money management and (some) independence, it’s just as important that the adult on the account is involved every step of the way. This includes monitoring their account, setting spending limits, and teaching good money safety habits.
We put together a guide to help you manage their first account and keep them, and you, better protected.
1: Set Up Notifications
Digital banking allows real-time monitoring of accounts which makes tracking spending easily accessible. One great way to monitor and stay informed on your child’s purchases is through account alerts. Most mobile banking apps provide you with options to set specific alerts for their transactions (locations, merchants, transaction types, spend limits).
Enabling real-time notifications is also a powerful tool for fighting fraud and keeping you and your child better protected from scams. Our recommendation is to set alerts for every time your child’s card is used so that you know when purchases are being made and where.
2: Discuss Debit Card Use
Your teen has a shiny new card and wants to tell all their friends and social media platforms aboutit! Before they have a chance to tap or swipe, they need to understand taking safety measures with their debit card. Explain to your new card holder that they should always know where their card is and to never share their PIN with anyone.
Lost card? It happens. In the BOS Mobile Banking App, there’s a function to turn the debit card off and back on once found. This is also a great tool to keep in mind in the instance you suspect a fraudulent charge on the account.
3: Manage Spending and Transaction Limits
Parents can better protect their child’s account from fraudulent activity by setting up spending and transaction limits. You have the ability to set up purchase controls that determine where your child can and cannot use their card and how much they are allowed to spend. Purchases can be customized based on location, merchant type, transaction type, and spend limit. If your child tries to make a purchase outside of where you have set their spending permissions or at an unapproved store, the transaction will be denied and the purchase won’t go through.
4: Monitor Account Activity
Another good measure to track their spending as well as potential fraud is by reviewing their account activity. Most banks give you the tools to do this through your online banking and mobile banking account, making it easy for you to stay on top of your child’s purchases. We recommend the adult on the account is checking their teens activity regularly and emphasizing the importance of doing so with their teen.
5: Money Safety is Everyone’s Responsibility
Youth checking accounts provide a great opportunity to talk with your child about smart money management. A top priority in those discussions should be how important it is to bank safely.
We are committed to keeping your personal information safe and secure, and it’s important that you’re taking necessary precautions to do the same. If you are a BOS customer and think someone has used your child’s debit card and suspect fraudulent activity, please call us immediately at 877-698-3278.
Ready to set up a BOS Youth or Teen Checking Account? Open account online or contact a personal banker today.
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