Teaching teenagers about budgeting is essential for their financial literacy and independence. Here are some practical steps parents can take to guide their teens through this important process.

Start with Basics – Introduce the concept of budgeting as a monthly spending plan. Explain what a budget includes—income, necessary expenses and discretionary spending. Keeping it simple at first can help them grasp the fundamentals without feeling overwhelmed[1].

Encourage Earning – Make budgeting a family affair. Discuss household expenses and income openly, allowing your teen to see how financial decisions are made. This involvement can allow for a better understanding of budgeting and help them appreciate the complexities of managing money[3].

Set Up an Allowance – Consider giving your teen an allowance tied to specific responsibilities. This can teach them to manage their own money and understand the value of earning. Encourage them to budget their allowance for both needs and wants, reinforcing the importance of prioritizing spending[2].

Create a Budget Together – Work with your teen to create their own budget. Start by calculating their total income, which may include allowances, gifts or part-time job earnings. Then, help them list their necessary expenses, such as phone bills or transportation costs. This hands-on approach helps them learn to balance income and expenses[3].

Use Budgeting Tools – Introduce your teenager to budgeting apps or templates that can help them track their spending. Visual aids can make budgeting more engaging and easier to manage. Alternatively, they can use simple pen-and-paper methods to write down their budget categories[1].

Encourage Saving – Teach your teen to prioritize savings by incorporating it into their budget. Encourage them to set savings goals for larger purchases or future expenses, emphasizing the importance of “paying themselves first” before spending on discretionary items[3].

By following these steps, parents can equip their teenagers with the skills they need to budget effectively, paving the way for a financially responsible future.

Ready to open an account to help your child get started? For Kids Club Checking* visit RCBbank.bank/Kids-Club/ . For Kids Club Savings* visit RCBbank.bank/Kids-Savings/

The opinions expressed above are the personal opinions of the author and meant for generic illustration purposes only. RCB Bank. Member FDIC. * Kids Club accounts are for individuals under the age of 18, and a parent or guardian is required to be joint owner or custodian on the account. Ask us for details. A monthly fee will be assessed for accounts receiving a paper statement. Member FDIC 

Sources:

[1] https://www.gohenry.com/us/blog/financial-education/how-to-teach-your-teenager-about-budgeting

[2] https://www.knockedupmoney.com/blog/building-financial-literacy-in-teens-in-6-steps

[3] https://parentandteen.com/help-teens-manage-money/

In today’s technological climate, manually balancing your checkbook with pen (or pencil) and your register likely has gone the way of the dodo bird.

But, knowing exactly what comes out and goes into your checking account not only is one of the best ways to combat fraud, it can give you a true idea of where your money is going and of your spending habits.

Most of your transactions and account information likely is readily available to you anytime in both your banking app and when you access your online banking account. You may even have a budgeting app linked to help you keep track of your expenses. So it may seem pointless or even redundant to keep track and balance your expenditures.

But with so many transactions these days, it’s easy to forget about one that hasn’t cleared your account yet. So if you regularly log all of your transactions, you always will know exactly how much money truly is in your account – to the exact cent.

And best of all, it doesn’t take long to learn, but it will require diligence on your part.

First, you should determine your account’s balance. Try to avoid using your debit card and writing checks for a couple of days to avoid any transaction-clearing lag. After waiting a few days, log into your banking app or online banking account to check your balance. Cross-reference the balance displayed against any automatic withdraws or outstanding checks. For instance, if your balance is $850.67, but you wrote a check to pay a water bill for $49.47, ensure that check has cleared. Otherwise, you’ll need to subtract the $49.47 from the $850.67 displayed balance.

Once you have determined your true balance, now, it’s just a matter of simple math. Just update your balance in your checkbook register by keeping track of each withdrawal and deposit as they occur. This includes debit card transactions as well as checks and automatic payments, as well as your payroll deposits if you have direct deposit.

Once you start logging each transaction, you can cross-reference to what posts to your account. You can either wait until you receive your monthly statement, or you can check daily or every other day, denoting each transaction in your ledger that clears and ensuring the totals match.

By keeping a running total of your transactions, your balance should match the balance on the statement. If the balances don’t match, check your register to see if a transaction has not been processed, if the bank has a record of a transaction that you do not have recorded in your register (then check this transaction to ensure it’s one you recognize or simply forgot to log) or if the amount of one of the transactions differs from what you registered.

If the balances still do not match, check your register and receipts against the record from the bank. Also check for any mathematical mistakes in your register (math mistakes happen to all of us!). If you believe an error has occurred, contact your bank.

Despite checkbooks and checks becoming more obscure in today’s technological landscape, having a handle and knowing just how much money is in your account always will be the most important tool you can have in your financial toolbox and is key to your financial health.

Tracking your transactions keeps you keenly aware of just how much money you have, helps you detect problems and, most importantly, allows you to plan ahead financially.

Financially Fit is your home fitness guide for all things financial, provided by RCB Bank. Find money-building tips, insights and inspiration to help you improve your financial well-being at RCBbank.com/GetFit. Opinions expressed above are the personal opinions of the author and meant for generic illustration purposes only. Member FDIC.

Whether it’s budgeting, saving, credit card interest or loans for big-ticket purchases, the more knowledge you impart upon teenagers, the better prepared they’ll be once they’re on their own. There are so many online money tools and financial phone apps, teenagers today can be more prepared and knowledgeable about money than any previous generation. And while these technological tools are useful in introducing teenagers to the concept of money management, they shouldn’t be entirely responsible for teaching them. That’s where you come in. Showing teenagers how it works in the “real world” will show them the rewards of proper money management and the pitfalls that can pop up along the way.

Here are some tips to help teach your teenagers:

1. Know the real cost of things. The price tag is rarely the actual cost. Talk about hidden fees, taxes and interest. Talk about personal expenses – utilities, car payments, mortgage, and unexpected purchases that can lead to financial trouble if you don’t plan for them, like auto repairs and medical expenses.
2. Learn to budget. Building wealth is not about how much money you make, it’s about how you manage the money you have. Money flows out faster than it flows in. Learn to spend less than you earn. Plan for purchases, comparison shop, negotiate terms and fees and save up money before buying things.
3. Be very careful with credit cards. Talk about the pros and cons of credit cards. One missed credit card payment can set you on a course toward long-term debt. Misuse of credit cards can also hurt your ability to take out a loan for a car or house. Don’t be afraid to share your personal experience with credit card misuse or debt and the sacrifices you had to make to rise above it.
4. Learn the secret to saving. The easiest way to build wealth is to set up automatic savings. Enroll in payroll direct deposit. Schedule recurring automatic money transfers from checking to savings. Start small and increase with pay raises. If you learn to put money aside and live below your means when you are young, it will be easier to build wealth as you move up the ladder.
5. Consider your future. Most adults in or nearing retirement wish they had saved more money. Nearly half of Americans have no retirement savings and still have to work when they are 70 and 80 years old. The younger you start saving, the greater control you’ll have over your financial well-being. Talk to your teenagers¬¬ about your personal retirement preparations.

Financially Fit is your home fitness guide for all things financial, provided by RCB Bank. Find money-building tips, insights and inspiration to help you improve your financial well-being at RCBbank.com/GetFit. Opinions expressed above are the personal opinions of the author and meant for generic illustration purposes only. For specific questions regarding your personal lending needs, please call RCB Bank at 855-BANK-RCB. With approved credit. Some restrictions apply. RCB Bank, Member FDIC.

Source:
https://www.fdic.gov/resources/consumers/money-smart/teach-money-smart/money-smart-for-young-people/index.html

You may not feel comfortable getting your teen a credit card right now, but it is never too early to talk about the benefits and risks of having one.

Credit Cards Are Not Free Money

Credit cards are a line of credit. This means they are debt until the bill is paid. Read the fine print on your credit card bill with your teen. Explain how quickly interest and late fees add up, and the burdens of long-term debt. “Teens need to learn the risks of credit cards,” cautions RCB Bank Mortgage personnel. “They need to learn how to be responsible and not over extend credit.”

Learn How to Budget Expenses

“Before you discuss credit cards, teach your teens how to create a budget,” says RCB Bank Wealth Advisor Cathy Sang. Talk about bills and monthly expenses and how you manage them. Better yet, create a budget with your teen using an average beginning career income. Determine how much can be spent on bills and extras, such as shopping or eating out. This will teach them how to plan for and manage their expenditures, so they don’t overextend credit.

Credit Reports & Credit Scores Matter

Talk to your teen about credit reports and how they offer details on how people manage money. This is important for when they want to buy a car, for example. Explain how credit scores impact their ability to get lower loan and insurance rates. “Kids need to understand the importance of building a good credit history early,” says RCB Bank Wealth Advisor Mary Wood. “Using a credit card wisely, by paying off the balance each month, can help improve their future credit score.”

Opinions expressed above are the personal opinions of the author and meant for generic illustration purposes only. Member FDIC.

The habits your kids pick up now will follow them throughout life. Guide them to good money habits with these tips.

Get$Fit Tip #1: Pay yourself first.

Did you know the average college debt for the graduating class of 2016 was $37,000?* Are your kids prepared to manage debt and build wealth at the same time? Do they know the secret to keeping car-buying costs as low as possible? What about how to prepare for unexpected expenses?

Get$Fit Tip #2: Take full advantage of your bank.

Teach your kids about money using our Learning Center, which offers uncomplicated money tips to help  build wealth, reduce debt and make money-smart decisions.

Also, help your kids begin building relationships at their bank and gain an understanding of services and resources available to them. Building a relationship with a banker now will help them in the future when it comes time to borrow money, begin investing and buy their first home.

Get$Fit Tip #3: Comparison shop for everything!

Student loans, college text books, rental properties, auto insurance, clothes – make it a habit to compare prices and look for the best deals. A little effort on your part can save you thousands of dollars.

Get$Fit Tip #4: Learn to budget.

Money flows out faster than it flows in. Building wealth is not about how much money you have, it’s about how you manage the money you have. Learn to live below your means. It’s the only way to build wealth.

Get$Fit Tip #5: Watch your credit score.

Your credit score is a history report on how well you manage your money. Pay bills on time and use credit cards carefully. The alternative is long-term debt and financial hardship.

Get$Fit Tip #6: Needs and wants are not the same thing.

There is never enough money to buy everything you want. Choose wisely. Today’s choices will affect your future financial well-being. Is instant gratification more important than a comfortable lifestyle?

Get$Fit Tip #7: Learn the secret to saving.

The easiest way to build wealth is to set up automatic savings. Have a portion of your wages automatically go into a savings and/or retirement account through payroll direct deposit. Invest in yourself.

* Institute of College Access and Success.

Opinions expressed above are the personal opinions of the author and meant for generic illustration purposes only. Member FDIC.

Set your young adult up for financial success with the right money management tools. Help transition financial responsibilities by setting up your child up with services designed to help deposit money, monitor accounts and guard against fraud.

Here are a few options that may benefit your young adult.

Anytime, anywhere banking
Mobile Banking & Mobile Deposit

Your young adult can check balances, pay bills, deposit and transfer money and find the nearest ATM or bank location from a smartphone. If child is going out of state, there is no need to switch banks. We can go anywhere. Download our Mobile Banking app. Once downloaded, you can sign up for Mobile Deposit.

Message, data rates, fees and deposit restrictions may apply. Subject to eligibility. Funds may not be available for immediate withdrawal.

Guard your account
Text Banking

With Text Banking, your young adult can set up text alerts and be notified anytime a transaction occurs on an account. This is a great fraud detection tool, as well as a budget tool to track account balances and monitor account activity 24/7.

Message and data rates and fees may apply.

We pay you to bank with us!
Rewards Checking

Let your young adult enjoy the same rewards you do.  We offer a variety of Rewards Checking accounts that meet your spending or saving preferences.

Some restrictions apply. Visit RCBbank.com/rewards to learn more.

A money-saving, easy-tracking way to pay bills.
Online Bill Pay

With Online Banking and Bill Pay, your young adult can pay bills to companies, institutions or individuals in one location. Saves time and money. Schedule payments in advance or set them up to recur each month. Also, our calendar and history features, lets your young adult see past and future payments at a glance – a great budget too.

Some restrictions apply. eBills may not be available for some companies.

Money management in one convenient location.
Online Banking

Online Banking allows your young adult to bank whenever, wherever. He or she can make payments, transfer money, view monthly statements and set up email alerts for practically anything. Stay in the in clear with alerts for insufficient funds or low balances – great for young adults just starting out.

It’s important to remind your children never to bank while using public Wi-Fi.

Learn more about online and mobile banking best practices at on our Security Center.

Access more resources in our Learning Center to help you and your young one during their transition of finanical responsibilities.

Message, data rates, and fees may apply. All accounts utilizing service must be enrolled in eStatements to avoid fee. Subject to eligibility and further review. Deposits are subject to verification and may not be available for immediate withdrawal. Deposit limits and other restrictions apply. Full details at RCBbank.com/BankAnywhere. MemberFDIC

Minimum Reward Requirements: Ten (10) debit card transactions per rewards cycle and maintain e-Statement enrollment. Not maintaining e-Statements will result in forfeiture of rewards benefits. Minimum reward requirements listed must be met and post to the account in each rewards cycle, which begins on the first business day of the month and ends on the last business day of the month. Debit card transactions include merchant or point-of-sale transactions, and exclude refunds or ATM transactions. Some restrictions apply. A monthly fee of $3 will be assessed for accounts receiving a paper statement. Member FDIC

Do you have a plan for your child’s transition from your checkbook to their own after they leave home? Have you discussed with  who will be expected to pay for what and for how long?

It’s time to have the talk.

Here is a 3-point guide to help you begin the transfer of money management responsibilities.

Have the talk.

Make a plan for your young adult’s transition from your checkbook to their own and communicate it with them. Start talking about money and life, about budgeting, expectations, unexpected expenses, credit and long-term effects of debt. Be sure you discuss who is paying for what. Set your young adult up for success.

Make sure your young adult has a checking account (and a savings account).

Already have one? You are set to go. If not, no worries. RCB Bank is local in many Oklahoma and Kansas college towns, like Stillwater, Norman, Wichita and Lawrence. Even if your young adult is moving out-of-state, we can go too. Our products are designed to serve you wherever you are. We offer a variety of mobile banking options that make it easy to bank wherever, whenever. Plus, keeping your young adult’s account with RCB Bank offers you easy access, in case you need to transfer money while helping them transition to adulthood.

Consider helping your young adult establish credit.

Building a good credit score now is important when it comes time to borrow money for a car or house later. Credit cards are not the only way to establish credit. Consider a Certificate of Deposit (CD) loan. To do this, have your young adult open a CD with money they’ve saved. Then talk to your banker about a loan against the money in the CD. This is a great option if you’re nervous about your young adult having a credit card.

Opinions expressed above are the personal opinions of the author and meant for generic illustration purposes only. Member FDIC.

Is your child leaving the nest? Do they fully understand the daily financial issues that will soon become their reality? It’s never too early to start the conversation. Here are six money tips to teach your children before they leave home.

1. Know the real cost of things.

The price tag is rarely the actual cost. Talk about hidden fees, taxes and interest. Talk about personal expenses – utilities, car payments, mortgage, and unexpected purchases that can lead to financial trouble if you don’t plan for them, like auto repairs and medical expenses.

2. Learn to budget.  

Building wealth is not about how much money you make, it’s about how you manage the money you have. Money flows out faster than it flows in. Learn to spend less than you earn. Plan for purchases, comparison shop, negotiate terms and fees and save up money before buying things.

3. Be very careful with credit cards.

Talk about the pros and cons of credit cards. One missed credit card payment can set you on a course toward long-term debt. Misuse of credit cards can also hurt your ability to take out a loan for a car or house. Don’t be afraid to share your personal experience with credit card misuse or debt and the sacrifices you had to make to rise above it.

4. Needs and wants are not the same thing.

You will never have enough money to buy everything you want. Choose wisely. Is instant gratification more or less important than a comfortable lifestyle? Today’s choices will affect your future financial well-being. Again, share stories of choices and consequences.

5. Learn the secret to saving.

The easiest way to build wealth is to set up automatic savings. Enroll in payroll direct deposit. Schedule recurring automatic money transfers from checking to savings. Start small and increase with pay raises. If you learn to put money aside and live below your means when you are young, it will be easier to build wealth as you move up the ladder.

6. Consider your future.

Most adults in or nearing retirement wish they had saved more money. Nearly half of Americans have no retirement savings and still have to work when they are 70 and 80 years old. The younger you start saving, the greater control you’ll have over your financial well-being. Talk to your teens about your personal retirement preparations.

However you decide to prep your kids for the real world, be sure money is a topic of conversation.

Opinions expressed above are the personal opinions of the author and meant for generic illustration purposes only. Member FDIC.