Home > Kids > Values and Responsibilities > Money and Kids > Teaching Kids About Using Checks
|

Teaching Kids About Using Checks

In This Article:

Page 1

After a child understands about coins and bills, it's time to explore other ways to pay for things. As an adult, you know that cash isn't necessarily king, as the saying goes. It's not a good idea to send cash through the mail or to carry a lot of cash when shopping, so other methods of payments should be used. One method is to pay by personal check.

A check isn't only a mark that's made when an assignment has been handed in or a task completed—it's also a piece of paper that represents money. A personal check works like cash. As you know, you give it to someone to whom you owe money. That person can turn your check into cash or use it just like money. A check is like a promise to the person you're giving it to that the amount you've written on the check is backed up by money in a checking account.

A checking account is a type of bank account. Checking accounts aren't investment accounts because you generally don't earn any interest on the money you keep in the account. Depending on the type of checking account, you may have to keep a certain amount of money there (called your balance). The balance generally is figured on a monthly basis and is called a minimum monthly balance. That balance on average during the month can't dip below a set amount (such as $100 or $1,000). If it does, you'll be charged a fee.

Financial Building Blocks

Personal checks aren't the only checks around: Money orders can be used just like checks. A money order is a check that's bought from the post office or a commercial business (such as a supermarket or a check-cashing store) in the amount needed. (Money orders from the post office are called postal money orders.) In any case, there's a small fee for each money order.

A check is proof that you've paid for something. A check is readily accepted as payment by most places and should be used instead of cash when sending payment by mail.

Younger children don't have any need for a checking account. They should know what a checking account is and what it's used for, but they don't need one of their own. However, once a teenager starts to earn money or goes off to college, it may be helpful to have a checking account to pay school telephone bills and other expenses. When your child is in high school, it becomes necessary for her to learn how to write a check, keep tabs on the account, and balance the checkbook.



Next: Page 2 >>

More on: Money and Kids

|

Excerpted from The Complete Idiot's Guide to Money-Smart Kids © 1999 by Barbara Weltman. All rights reserved including the right of reproduction in whole or in part in any form. Used by arrangement with Alpha Books, a member of Penguin Group (USA) Inc.

To order this book visit Amazon's web site or call 1-800-253-6476.


highlights

Vote Now for the Children's & Teen Choice Book Awards
Voting is open now through May 3 for the Children's and Teen Choice Book Awards — the only national book awards program where the winning author, illustrator, and books of the year are selected by young readers. Encourage your child to vote for his favorites today!

Find Today's Newest & Best Children's Books!
Looking for newly released books for your child? Try our new Book Finder tool to search for new books by age, type, and theme, and create reading lists for kids!

10 Best Outdoor Toys of 2015
Looking for an amazing toy that will keep your child playing outside until the sun goes down? See our picks for 10 hot new outdoor toys for all ages.

Registered for Kindergarten — Now What?
Wondering what to do now that you've signed your child up for kindergarten? Try our award-winning Kindergarten Readiness app! This easy-to-use checklist comes with games and activities to help your child build essential skills for kindergarten. Download the Kindergarten Readiness app today!

stay connected

Sign up for our free email newsletters and receive the latest advice and information on all things parenting.

Enter your email address to sign up or manage your account.

Facebook icon Facebook icon Follow Us on Pinterest

editor’s picks