Kids Kreative Korner...
Business-Minded Kids Want to Know About Banks and Bonnie Drew Has the Answers.
By Bonnie Drew
As you've no doubt read in this column, kids are extremely creative in starting and running businesses of all types. In fact, the creativity and enthusiasm of young people can be an ongoing source of inspiration to those of us pursuing our own business dreams. Many of the questions I get, center on banks and banking, subjects that both fascinate and confuse young people.
So let's look at the commonly-asked questions and offer a few answers:
1. Do I Need a Bank Account to Run My Business?It is possible to run a business on a "cash only" basis. However, most young entrepreneurs have customers that like to pay with checks. If you receive checks, you will need a bank account where you can deposit or cash the checks.
2. What Kind of Account Should I Open at the Bank?
Every young person should have a savings account for long-term savings goals. The bank where you have your savings account will usually cash the checks you receive from customers. Or you can deposit the checks and withdraw money later as you need it. However, banks usually limit the number of withdrawals you can make from a savings account without a service charge.
3. Can a Kid Have a Checking Account?
Most banks have a minimum age for checking accounts that ranges somewhere between ages 16-18. Some banks do allow younger kids to have a checking account if a parent co-signs. To open an account, you will need a driver's license (or photo ID) and a social security card.
It's wise to shop around for a bank that provides the services you need. The Young Americans' Bank in Denver, Colorado has bank-by-mail savings accounts for ages 0-21 and checking accounts for ages 12-21. Free brochures explain how to operate a savings or checking account. Write to them at: 311 Steele St., Denver, CO 80206.
Bonnie Drew is the author of FAST CASH FOR KIDS (2nd edition), published by Career Press (1-800-227-3371). She is also the creator of the KIDS BUSINESS software for young entrepreneurs, available from Homeland Publications (713-332-9764).
Drew is also Editor of YoungBiz online magazine, published by Kid's Way, Inc., a company that helps youth prepare for business and the workplace of the 21st century. For more information, write to Kid's Way at 5589 Peachtree Rd, Chamblee, GA 30341 or call toll free 1-888-KidsWay (1-888-543-7929). YoungBiz magazine can be found at http://www.youngbiz.com
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