Tips and tools for managing checking accounts
To stay in charge of checking accounts to avoid costly fees, encourage your teens to follow these rules every day.
- Make sure deposits are available before you spend. When money goes into your checking account as a direct deposit, the whole amount is available to spend that day. But deposits made with a paper check can take several days to become available. So check your available balance before you spend.
- Record every transaction on the spot. Don't assume you'll remember to do it when you get home.
- In doubt? Get your available balance in seconds. Use your bank's online or mobile services or ATMs to get quick access to your balance.
- Leave yourself a cushion. Pick a specific amount — maybe fifty or a hundred dollars — and treat it as your personal "no spend" zone. That way, a small mistake won't leave you overdrawn.
- Realize you just spent more than you have? Don't let the account stay overdrawn. Make a deposit as soon as possible to cover the overdraft and any fees.