One of the frustrations we have encountered in moving to Northern Virginia was Virginia’s banks. For a state that prides itself in being more enlightened and balanced in family matters, banking laws restrict the family’s ability to teach children to handle money responsibility. The state’s position is that no minor can have their own bank account. All accounts for minors must have a parent, and the parent has to be present for small withdraws and even for deposits.
When we lived in Iowa the boys had their own accounts and could make deposits without us present. They could make small withdraws without our written permission twice a month. Larger or more frequent withdraws required parental approval until you are sixteen.
In Virginia a person must be eighteen to have a bank account. Hence, each year there are thousand of families of college freshmen who have logistical challenges to pay for their children’s school books, tuition and provide children with spending money. In most cases parents must either give their children a large amount of cash at the beginning of the semester to pay for their books and spending money for the semester or go with them to shop for their supplies.
Evie and I hold that the best way to teach children to handle money is to allow them to manage their own accounts. The state believes not only are children under the age of eighteen not able to make decisions on financial matters but they also believe parents are not responsible enough to sign forms that would allow their children to handle their own bank accounts and to set limits on withdrawing of funds.
I believe if a child uses small portions of money unwisely, so be it. Loosing money or using it unwisely is a powerful teaching moment. It is better to loose $40 at fourteen due to unwise choices than a thousand at the age of eighteen. Evidently the legislators feel that a sixteen year child who is deemed responsible enough to operate a motor a vehicle lacks the capacity to handle a bank account.
The state laws make it impossible for Josh to have money this summer without having a large amount of cash/travelers checks in his wallet at the beginning of the summer. It is ironically that in its effort to protect children our legislators are exposing Josh and thousands of Freshmen to theft.
Evie and I have found a legal way around the state laws by closing Josh’s account and transferring his money into a new one under my name. This account will only contain his funds. By use of a bank card at ATMs he will make deposits and withdrawals from this dedicated account.
Evie and I hold that our youth are capable of handling cash banking responsibilities. We also hold parents should have the right to sign the appropriate forms to allow their children to conduct basic banking business. Evidently the state legislators have a less of an opinion of our youth than us.
Reflective Wanderings - Reflections on various topics that arise out of my personal, life and professional experiences. There are also are some family related news, travels and pictures.
3 comments:
In Virginia, kids can start learning to drive at age 15 and can start working part-time at 14. Now, if they start working at 14, where are they supposed to keep their money until they turn 18?!? There seems to be some inconsistency here. To appropriate a cliche:
Only in America!
Emily and Nathan opened their own bank accounts last fall for their flyer money. It would be interesting to hear their rationale for these banking laws in today's context.
By the way, here in Alberta, kids can get their driver's license at 14. They can begin to work at age 12 - such is the critical nature of the labour shortage here in Alberta.
our boys also have their own accounts. I totally agree with you that children need to learn at a young age how to handle their own money and how to budget. These are valuable skills that need to be taught so they don't fall into some financial traps when they become adults.
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