Also known as a demand deposit account, a checking account is a service provided by most financial institutions. This service allows the young people to deposit and withdraw money on demand. Money can be withdrawn by writing a check or electronically through the use of a debt card/ATM card.

Viva La Difference. Checking accounts today come with several structures and rates–some types requiring a minimum balance, charge for every check written, and they may charge for ATM withdrawals.

Basics Training. There are plain vanilla accounts with just the basics for those only writing a few checks each month, those targeted to students, seniors, and those keeping high balances. In fact many accounts today pay interest on the high balances. The financial institution records the deposits that the owner makes to the account and handles the posting of the checks written against the account and all debit card/ATM card withdrawals. All entries should be recorded in a check register which is kept in a book with blank checks.

Common Practice, Makes Perfect. Your son or daughter should make it common practice to reconcile or balance their account once per month so that adequate funds are maintained. If she overdraws or uses more funds than are present in the account, a non-sufficient funds (commonly referred to NSF) charge will be assessed on her account. The financial institution sends a statement once per month and balances can be checked daily via telephone, an ATM, or on-line banking via the internet.

Isn't That Convenient! One convenient aspect of a checking account is that deposits can be made directly to the account. These deposits could include a paycheck from your child's employer, as well as his or her social security payments, IRS refunds, and other forms of government funds.

Strange Brew. Young people today have come of age in a time of ATM cards and the use of their debit card to make many purchases. Writing checks can be a strange notion to them and therefore the idea of balancing/reconciling the account is also. Today's youth know they can get their balance via an ATM, online banking, and now many can access information via their cell phones. They can see the balance in real time and see no need to make entries in their check register. Additionally, many members of earlier generations are paying bills using online banking and using debit cards for purchases so the number of checks flowing through the banking system continues to decrease.