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Our economic system is setting our kids up for failure!?!?

DS receives a letter from his bank saying they'll be charging a monthly maintenance fee on his checking account unless he keeps $1,500 balance and/or uses his debit card 10x/mo. He's a 17-year old getting ready for college; he can't tie up that much just to avoid fees. He pays cash for everything except gas (2x/mo) and his car insurance (2x/yr) so he'll never meet the 10x/mo debit card transactions. He's changing banks this week.

His employer pays via a money network debit card, urging employees to use that for all their purchases to make their lives more "convenient". It takes an extra step for him to go online, transfer those funds to his savings account; if he didn't, he could potentially be carrying that debit card with thousands of $ on it rather than having those funds safely in the bank. What is the mentality of these institutions? Good thing he understands just how ludicrous this is!

 
Anonymous

Asked by Anonymous at 1:55 PM on Nov. 9, 2010 in Money & Work

This question is closed.
Answers (7)
  • ya know that's so stupid to require a person of that age to have so much money to begin with..I don't even have that much and if it does ever become required I'll just use cash maybe that's what ur son needs to do use cash and put everything else in savings and close the checking I know alot of ppl are doing this now he can have his checks sent direct deposit to his savings..We did that for years..maybe check into haveing that done and all those bank fees will go away
    chica679

    Answer by chica679 at 1:59 PM on Nov. 9, 2010

  • Their mentality doesn't sound too sound and business worthy, at least he has got the freedom to go elsewhere, smart kid!
    older

    Answer by older at 1:59 PM on Nov. 9, 2010

  • I think what needs to happen is financial education needs to be implemented into schools, teaching kids the value of money and money management. There should also be concentration on how to choose a bank, how banks work, etc..
    atowers

    Answer by atowers at 2:00 PM on Nov. 9, 2010

  • Start shopping around for another bank. Ours has a type of checking account that requires only $1 minimum balance and has no monthly fees. His options are not as limited as it seems.

    As for the debit card, as long as it's not costing him anything then he can go ahead and transfer $$ to his checking online. Annoying, yes, but it's just one simple transaction.

    I do agree that things like this are obstacles that are not helping encourage financial responsibility, but it sounds like you're aware and your son seems responsible enough to resist the temptations.
    michiganmom116

    Answer by michiganmom116 at 6:36 PM on Nov. 9, 2010

  • We bank with Chase, and checking is free as long as one of us has direct deposit on our paycheck. no min balance required.
    Anonymous

    Answer by Anonymous at 8:17 PM on Nov. 9, 2010

  • Find a new bank. Not all of them charge fees like that.
    HotMama330

    Answer by HotMama330 at 1:49 PM on Nov. 10, 2010

  • Every thing has worked itself out? yeah, to tons of foreclosures, job losses, and increased numbers on PA. It sure did work itself out.
    Candi1024

    Answer by Candi1024 at 2:37 PM on Nov. 9, 2010

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