15.12.2021
Youth Account: 5 tips for your first account
Cashless payments, electronic fund transfers and withdrawing money from ATMs have long been part of everyday life. While children see these actions from a very young age, they still need to be taught how to be responsible with money. The Youth Account is a good way to teach this sensitive topic to them. Below is an overview of the key points.
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1. The right time
It is largely up to the parents/guardians to decide when the right time is for a Youth Account. But there are some reference points for when a bank account should be opened for a child: Their first paying job, such as a holiday job, or, in the case of adolescents, the day they start earning pocket money. ‘Our experience has shown that, once they start buying their school lunches from the age of around 13, for example, children can also start being given responsibility for their own money matters via a bank account,’ says Ertan Piskin, payments expert at Erste Bank.
If a child is under the age of 14, a Youth Account can only be opened with a legal agent, who is also authorised to access it and can set limits for withdrawals. ‘This gives the young account-holder a safe environment in which to learn about money matters’, says Piskin. Once a child is 14 years of age, they can open an account themselves. Proof of legitimacy is always required.
2. Credit account with card usage and safety net
A Youth Account is free and operates on a credit basis. So you don’t have to worry about the account being overdrawn even if a debit card is included with the legal agent’s consent. ‘Adolescents can use the debit card to withdraw limited amounts of cash or pay for small purchases. Many bank cards also have a function that enable them to be used for online purchases. So, to avoid any traps, teach your kids how to shop online responsibly, and practise this with them’, says Piskin..
3. Bank transactions via smartphone
Mobile banking is all the rage in the modern smartphone age. The idea of completing finance-related tasks securely and conveniently while on the go is especially popular among young people. From the age of 14, for example, teens can use Apple Pay for free. ‘Young people in particular do everything on their phone. To keep track of their transactions, we recommend that both young account-holders and their parents/guardians install our George internet-banking app on their smartphones’, says Piskin.
4. Keeping track
Financial health is dependent on a number of factors. These include keeping track of your money at all times, knowing what you have spent your money on, how much you have received, and how much you still have. Regulatory checking your account should thus be a matter of course. Parents should practise correctly reading account overviews with their children. ‘Cash without any records can easily get out of control with adolescents. By having their own account and checking it regularly, they learn how to better plan their own finances. And parents can also see what their children are doing with the money, which is good for mutual trust’, says Piskin.
5. Increasing an awareness of security
Being aware and extremely careful is important, particularly when it comes to financial matters. Children should be made to realise that they need to be responsible with their account details, bank card and PIN code, and that their debit card needs to be locked immediately if los
About the spark7 Youth Account:
The spark7 account offered by Erste Bank und Sparkassen is a free bank account for children aged 10 to 19. The account management, debit card and standing orders are all free of charge. The spark7 debit card is available as a wristband, sticker or in mobile format on a smartphone. The explicitly displayed 16-digit card number, expiry date and CVV, along with the s Identity app for clearance, mean it can also be used for online purchases. Transactions can be viewed in the George internet banking portal or the George app, in which the spark7 account can be customised with different colours, names and photos. The finance manager categorises income and expenses automatically, while watchdogs provide notifications of credits, debits and reached limits. When opening a spark7 account, Erste Bank und Sparkassen also offer the ÖBB Vorteilscard Jugend card free of charge. Plus, there are also competitions and regional discounts available at www.spark7.com.
1. The right time
It is largely up to the parents/guardians to decide when the right time is for a Youth Account. But there are some reference points for when a bank account should be opened for a child: Their first paying job, such as a holiday job, or, in the case of adolescents, the day they start earning pocket money. ‘Our experience has shown that, once they start buying their school lunches from the age of around 13, for example, children can also start being given responsibility for their own money matters via a bank account,’ says Ertan Piskin, payments expert at Erste Bank.
If a child is under the age of 14, a Youth Account can only be opened with a legal agent, who is also authorised to access it and can set limits for withdrawals. ‘This gives the young account-holder a safe environment in which to learn about money matters’, says Piskin. Once a child is 14 years of age, they can open an account themselves. Proof of legitimacy is always required.
2. Credit account with card usage and safety net
A Youth Account is free and operates on a credit basis. So you don’t have to worry about the account being overdrawn even if a debit card is included with the legal agent’s consent. ‘Adolescents can use the debit card to withdraw limited amounts of cash or pay for small purchases. Many bank cards also have a function that enable them to be used for online purchases. So, to avoid any traps, teach your kids how to shop online responsibly, and practise this with them’, says Piskin..
3. Bank transactions via smartphone
Mobile banking is all the rage in the modern smartphone age. The idea of completing finance-related tasks securely and conveniently while on the go is especially popular among young people. From the age of 14, for example, teens can use Apple Pay for free. ‘Young people in particular do everything on their phone. To keep track of their transactions, we recommend that both young account-holders and their parents/guardians install our George internet-banking app on their smartphones’, says Piskin.
4. Keeping track
Financial health is dependent on a number of factors. These include keeping track of your money at all times, knowing what you have spent your money on, how much you have received, and how much you still have. Regulatory checking your account should thus be a matter of course. Parents should practise correctly reading account overviews with their children. ‘Cash without any records can easily get out of control with adolescents. By having their own account and checking it regularly, they learn how to better plan their own finances. And parents can also see what their children are doing with the money, which is good for mutual trust’, says Piskin.
5. Increasing an awareness of security
Being aware and extremely careful is important, particularly when it comes to financial matters. Children should be made to realise that they need to be responsible with their account details, bank card and PIN code, and that their debit card needs to be locked immediately if los
About the spark7 Youth Account:
The spark7 account offered by Erste Bank und Sparkassen is a free bank account for children aged 10 to 19. The account management, debit card and standing orders are all free of charge. The spark7 debit card is available as a wristband, sticker or in mobile format on a smartphone. The explicitly displayed 16-digit card number, expiry date and CVV, along with the s Identity app for clearance, mean it can also be used for online purchases. Transactions can be viewed in the George internet banking portal or the George app, in which the spark7 account can be customised with different colours, names and photos. The finance manager categorises income and expenses automatically, while watchdogs provide notifications of credits, debits and reached limits. When opening a spark7 account, Erste Bank und Sparkassen also offer the ÖBB Vorteilscard Jugend card free of charge. Plus, there are also competitions and regional discounts available at www.spark7.com.