Checking, Savings, and other types of accounts

[reallyfull]

I was thinking of getting an account for a relative who is 16 yrs old. I want to put some money aside for them but I also want them to be able to have some spending money too. Would a checking/savings account be the way to go? I would be putting money into it bi-weekly. I was also looking at those pre-paid credit cards is it possible to set that up for somebody under 18? He is very responsible for his age and I'm sure he wouldn't be foolish with his spending habbits. Just looking for some advice. Thanks

 

[Schfifty Five]

Set up a low limit CC for him and also a regular checkings account to pay off the CC. That combo will be his spending money.

Open some online savings account like ING direct or Emigrant direct, etc for higher interest rates. That will be his savings account.

 

[Kenazo]

You'd probably want to keep the savings seperate from the checking. If you're talking enough money to bother, you could look at some sort of a trust account. If it's only a few bucks, just keep it with your savings until you're ready to give it to him.

 

[xrax]

some sort of joint account at any bank or credit union

 

[RossMAN]

I was thinking of getting an account for a relative who is 16 yrs old. I want to put some money aside for them but I also want them to be able to have some spending money too. Would a checking/savings account be the way to go? I would be putting money into it bi-weekly.

Unless you're the parent or guardian isn't that the parents primary role? My first reaction is tell them to GET A JOB unless they're a model student, A+, in sports, etc. Otherwise get a job.

I would co-sign on a savings account at first to learn the basics. After a few months get a checking account with checks and a debit/ATM card.

Do they still teach personal finance in high school? Please tell me they do.

I was also looking at those pre-paid credit cards is it possible to set that up for somebody under 18? He is very responsible for his age and I'm sure he wouldn't be foolish with his spending habbits. Just looking for some advice. Thanks

VISA Buxx should work and there is no age limit that I'm aware of.

 

[RossMAN]

Any other suggestions?

 

[PHiuR]

paypal...you can paypal him money very easily and he can have a debit card connected to his account.