AJ Gets A Checking Account

Our youngest son (heretofore known as AJ = Accountability, Jr.) is turning 19 in a few weeks, yesterday we went to the bank together to get him started with a checking and savings account.

I learned a few things while I was at the bank yesterday.

First off, I learned that the account we use for Mr. A’s business offers free checks. When I ordered his checks a few weeks ago, someone commented to my post and suggested I should check to see if the bank offers free checks. Well, I never really got around to that, and yesterday, when our “personal banker” was getting AJ’s account set up she said checks were completely free. With this account, she says, “EVERYTHING is free“. Checks, billpay, you get a checking and savings account, and here’s the catch: you must have one automatic transfer (minimum) of $75 moving from your checking account to your savings account each month. You can move the money back right away. I have been using that feature of Mr. A’s account to move over the money we put into savings monthly, for upcoming bills.

The only thing about Mr. A’s account is that it’s not actually a “business” account by the bank’s standards, so I am not sure how they would have felt about putting his business name on the check, like I was able to do when I ordered them myself online. Well, it’s not something I can go back and undo at this point.

We also discussed AJ beginning to build credit with a secured credit card. I suggested he start with the checking and savings accounts and have him get some understanding of how that works and talk about the secured credit card. He will need to save $300 to get that started.

We also put AJ on our personal account as a signer and ordered a debit card for him. He’s been borrowing my credit card when I need him to run errands for me, and this will make it easier.

I also learned our bank has a program where you can earn points for using your debit card, but it costs $12.00 per year. At first I thought you could have all your debit cards from all your accounts on the program, and my eyes grew wide thinking we must put out $5000 a month from our accounts, but then she clarified and said only one card. I think we can pay $12.00 for each card, and I think she said you get 1 point for each dollar you spend. I need to go look at that again. That would mean if I spent $1000 on my card each month, I would get $10 in points. I’d be paying $1 a month for the program, so I’d be netting $9. But then there are other cards out there giving you a lot more points or cash back. I really must research this and stop procrastinating!

Yours Truly,

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2 thoughts on “AJ Gets A Checking Account

  1. That’s really exciting for your son!

    I was under the impression that a secured credit card didn’t build credit, since it is secured. Any thoughts on that?

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  2. Hi Kacie! Actually this is exactly the method I used to begin building my own credit 25 years ago. The bank takes your money and holds onto it, and you get to use the money, by way of the credit card. Make you payments on time faithfully for a year and then ask you ask the bank to turn the card into an unsecured card. The bank deems you credit worthy and gives you your money back. We are doing this for Mr. A because he has been dealing with cash for most of his life. Thanks for visiting and a special thanks for commenting!!

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